Sequoia partners with a small number of outlier founders at the very start of their journey and aims to hold for decades, well beyond an IPO. They prize clarity of thinking: a company should be definable in a single declarative sentence, anchored on a clear 'why now?' and a problem founders are obsessed with. Founder-market fit, grit and first-principles thinking matter more than polish or headline market size, and the current focus is AI as a once-in-a-generation platform shift across commerce, voice, and the physical world.
A sharply described customer pain that founders are genuinely obsessed with, with a clear account of how it's solved today and why current solutions fall short. Sequoia wants evidence that people care about the problem enough to pay, not just in the abstract.
“Describe the pain of your customer. How is this addressed today and what are the shortcomings to current solutions.” — Writing a Business Plan | Sequoia Capital
“They need to care about the problem not only in the abstract, but they need to be willing to pay for the solution.” — The Arc PMF Terrifying Questions Framework | Sequoia Capital
“What slowed his dad down affected millions of electricians, HVAC techs, plumbers and other workers.” — Partnering with Probook: AI for the Trades | Sequoia Capital
A clear 'eureka' insight behind the solution and a single declarative sentence of company purpose. The product should be uniquely compelling, durable, and ideally do work that legacy alternatives cannot.
“Explain your eureka moment. Why is your value prop unique and compelling? Why will it endure?” — Writing a Business Plan | Sequoia Capital
“Start here: define your company in a single declarative sentence.” — Writing a Business Plan | Sequoia Capital
“Unlike legacy recruiting platforms that simply organize resumes, Juicebox actively sources, qualifies and engages candidates on your behalf, making it the first true AI recruiting partner.” — Why We're Partnering with Juicebox | Sequoia Capital
A clearly identified customer and market that is large enough to justify the bet; the best companies often invent their own markets. Sequoia weighs whether the TAM provides a big enough reward, but founder-market fit matters more than a headline number.
“Identify your customer and your market. Some of the best companies invent their own markets.” — Writing a Business Plan | Sequoia Capital
“You want to understand if the TAM provides a big enough reward.” — The Arc PMF Terrifying Questions Framework | Sequoia Capital
“The physical world represents 80% of global GDP. The companies who win the new frontier of physical AI will become some of the largest companies in the world.” — Building Tomorrow's Transformational Companies | Sequoia Capital
Engaged and retained users with low churn as the North Star, and evidence the product changes behavior. There is no fixed revenue threshold at seed, but at every stage Sequoia wants proof people care enough to pay and stick around.
“Your North Star is engaged and retained users.” — The Arc PMF Terrifying Questions Framework | Sequoia Capital
“PMF is an ongoing pursuit, not a finite destination.” — The Arc PMF Terrifying Questions Framework | Sequoia Capital
“With just four people, the team bootstrapped to $1M in ARR.” — Why We're Partnering with Juicebox | Sequoia Capital
Outlier founders with grit, founder-market fit, and a first-principles, fast-moving approach. Sequoia backs original, quirky, even outsider thinkers who are obsessed with the problem, and evaluates whether a second conversation sustains and deepens conviction.
“We seek founders of any background from around the globe who see possibility where others see limits, with the unshakable grit to turn impossibility into reality.” — Building Tomorrow's Transformational Companies | Sequoia Capital
“Culture and vision are the two essential roles of a founder. You can hire for any other aspect of a business, but those can't come from outside.” — Pat Grady
“Anil and Sunil are very special founders—smart, disciplined, intensely curious and undeterred by even the most daunting task.” — Partnering with Meter: Reliable Internet For Everyone | Sequoia Capital
“Tell the story of your founders and key team members.” — Writing a Business Plan | Sequoia Capital
A credible account of how the company will thrive economically, with customers who will pay enough to build a real business. Sequoia is increasingly drawn to outcome-based vertical AI models that can capture a share of the value they create.
“How do you intend to thrive?” — Writing a Business Plan | Sequoia Capital
“Will people pay enough for it to build a real business?” — The Arc PMF Terrifying Questions Framework | Sequoia Capital
“the opportunity for vertical agents to deliver outcomes—not only by going after software budgets, but also by taking a cut of the savings that LLMs and thoughtful, domain-specific tailoring unlock.” — Partnering with Magentic | Sequoia Capital
An honest map of direct and indirect competitors plus a credible plan to win. In fast-moving categories Sequoia weighs speed of execution and first-mover advantage, and prizes products that differentiate sharply against legacy alternatives.
“Who are your direct and indirect competitors. Show that you have a plan to win.” — Writing a Business Plan | Sequoia Capital
“This is a category where speed of execution determines the winner given the first mover advantage.” — Partnering with Auctor | Sequoia Capital
“Unlike legacy recruiting platforms that simply organize resumes, Juicebox actively sources, qualifies and engages candidates on your behalf, making it the first true AI recruiting partner.” — Why We're Partnering with Juicebox | Sequoia Capital
A clear, compelling reason the company can be built now and not before. Sequoia treats 'why now?' as one of the most important questions and currently sees AI as a once-in-a-generation platform shift as transformative as the internet.
“The best companies almost always have a clear why now? Nature hates a vacuum—so why hasn't your solution been built before now?” — Writing a Business Plan | Sequoia Capital
“Today, founders face a once-in-a-generation opportunity, as AI is poised to reimagine every industry. We are at the precipice of a foundational platform shift as transformative as the rise of the internet.” — Building Tomorrow's Transformational Companies | Sequoia Capital
“As new data center capacity comes online in 2025, AI compute prices should continue their epic decline. This is great news for startups and should incentivize net-new innovation.” — David Cahn
Sequoia's own deck template ends not with a fundraising 'ask' slide but with vision and financials: a five-year picture of what will be built, plus any financials you have. The implicit ask is conviction in the long-term, enduring company you intend to create.
“If all goes well, what will you have built in five years?” — Writing a Business Plan | Sequoia Capital
“If you have any, please include.” — Writing a Business Plan | Sequoia Capital
“There is something magical about forming partnerships in the earliest days and then witnessing their evolution. Initial ideas grow into legendary companies—from Apple to Nvidia to Stripe to Wiz.” — Building Tomorrow's Transformational Companies | Sequoia Capital
“If you're going to be really successful in this business, you have to be contrarian—and right.”
“Culture and vision are the two essential roles of a founder. You can hire for any other aspect of a business, but those can't come from outside.”
“As new data center capacity comes online in 2025, AI compute prices should continue their epic decline. This is great news for startups and should incentivize net-new innovation.”