Fantastic presentation from Greg McAdoo, Partner at Sequoia Capital, at Startup School ’08 on what he looks at in evaluating startup companies for investment. Reinforces what a lot of entrepreneurs (and some VCs) forget about, the importance of market. It’s the first thing he talks about after introducing his “surfer” analogy. Too many people get caught up in the product, and lose sight of the fact that there’s has to be enough people to sell it to at that right time. This is especialy true here in Europe, where VC teams tend to have a heavier mix of engineers and scientists. Trees tend to have more attention paid to them than forests.
Earlier this week Sequoia Capital called a meeting of all the CEO’s of their various portfolio companies to dose out a heaping helping of today’s bleak economic reality. The now infamous (and equally voluminous) 56 slide presentation of doom has been the topic of much conversation up and down the vaulted halls of many esteemed private equity and venture capital houses, not to mention becoming a “most searched” category on the web. There’s a lot of stark truth in the message (and some great info in general). Here it is for you all to read for yourselves: