roelof botha at stanford university e-bootcamp, 2/28/09

EUREKA!AND OTHER ELEMENTS OF A SUSTAINABLE COMPANY

THEY WERE ONCE IN YOUR SHOES

FRUSTRATION, RESIGNATION, INNOVATION

SOLVED APROBLEM FORTHEMSELVES

CISCO

APPLE

GOOGLE

ADMOB

YOUTUBE

MANY OTHER EXAMPLES…

SEQUOIACAP.COM/IDEAS

COMPANY PURPOSE

CISCO SYSTEMS BUILDS SPECIAL

PURPOSE UNIX SERVERS THAT

ALLOWS

CONNECTIVITY BETWEEN

HOMOGENEOUS NETWORKS CISCO SYSTEMS NETWORKS

NETWORKS

PROBLEM

& SOLUTION

MARKET SIZE

– PORTER’S 5 FORCESCOMPETITION

suppliers

substitutes

buyers

complements

COMPETITION – TECHNOLOGY FRONTIER

COMPETITION – FMA vs LMA

TECHNOLOGY

PARTNERSHIPS

SIMPLICITY

BUSINESS PROCESS

DOMAIN KNOWLEDGE

NETWORK EFFECT

DESIGN

COMPETITION – ACCUMULATE ADVANTAGE

PRODUCT

PRODUCT

BUSINESS MODEL

TEAM

FINANCIALS

2007 2008 2009 2010

REVENUE

GROSS MARGIN        

OPEX        

PBT        

SEQUOIACAP.COM/IDEAS

CLARITY OF PURPOSE

SPECTACULAR MARKET

ALLEVIATE CUSTOMER PAIN

TEAM DNA

INCREDIBLE PRODUCT FOCUS

REAL OPERATING MARGINS

FRUGALITY

INFERNO WITH A SINGLE MATCH

1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

ATARI TANDEM APPLE AMCC LINEAR TECHLSI LOGICMENTOR GRAPHICS

3COMELECTRONIC ARTS

ORACLESYMANTECCYPRESS

PMC-SIERRA CISCOVITESSE

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

MICROCHIP OXFORD HEALTH ASPECT DEVELOPMENTPROGRESS SOFTWARE FLEXTRONCIS

NVIDIAINSDOCUMENTUMNEOMAGIC

ARBOR (HYPERION)

VERISITY GOOGLERACKSPACE

NETWORK APPLIANCETERAYON YAHOO!

AGILEREDBACK

PIXELWORKS PAYPAL IPOIKANOSMELLANOX

2001 2002 2003 2004 2005 2006 2007 2008

RHAPSODYNAVINIACTONATRAIANA

ARUBANETSCALERISILONTRAIANARIVERHEAD

NETEZZAOPEN-SILICON

SOURCEFIRE YOUTUBEFOLLOWAPPORTAUTHORITY

BLUECOATVANCEINFOIDEA CELLULAR

2000 – 02 44%

2007 – 08 16%

QUMRANET EDELWEISSRENHE

UPS AND DOWNS

WHAT’S YOUR

PROBLEM?