How Sequoia Capital Became the Most Powerful VC Firm in the World
How did Sequoia Capital a small start up Venture Capital firm rise to be the richest in the world.
In 1972, a former marketing executive named Don Valentine started a small venture capital firm in Silicon Valley. He named it Sequoia Capital after the towering trees known for their longevity and strength. At the time, venture capital was niche. Startups were fringe. Silicon Valley wasn’t yet the center of the business world.
Fast forward to today, and Sequoia Capital is arguably the most dominant VC firm on Earth.
Here’s how they pulled it off:
Built Different from Day One
Valentine had a unique edge: he was an operator first, investor second. He had worked at Fairchild Semiconductor and National Semiconductor. He understood technology. But more importantly, he understood founders.
From the beginning, Sequoia backed technical teams building things that looked weird to everyone else. They weren’t chasing consensus. They were chasing conviction.
The Power of Early Bets
Sequoia didn’t just get lucky. They got in early:
Apple (1978) — One of their first iconic wins
Cisco
Oracle
Yahoo
Google
YouTube
WhatsApp
Airbnb
Stripe
Instagram
Nubank
Each time, they weren’t just writing checks. They were building relationships. Helping recruit. Guiding product strategy. Opening doors.
Global Expansion
As Silicon Valley went global, so did Sequoia. They set up local funds in China, India, and Latin America. But unlike many VCs, they didn’t treat international teams as side bets. They empowered them with autonomy and capital.
This gave them exposure to massive non-U.S. wins like:
Meituan
Bytedance (TikTok)
OYO
Zomato
The Sequoia Flywheel
Their reputation created a founder magnet:
Founders wanted Sequoia on their cap table.
That gave Sequoia first looks at top deals.
That led to more wins.
More wins = more LP interest.
More capital = more shots.
It became a self-fulfilling cycle of success.
Innovation in the Model
Sequoia isn’t just winning because of brand. They’ve innovated structurally:
Created the Sequoia Capital Fund to hold public stock longer (instead of exiting at IPO)
Reinvested across multiple stages (seed to growth)
Built a massive internal team of operators, recruiters, and experts to help portfolio companies scale
They also quietly built their own internal software stack to track performance, diligence companies, and keep a pulse on markets.
Final Thought
Sequoia didn’t become dominant by chasing hype. They became dominant by backing talent early, building deep conviction, and scaling globally without losing focus.
The firm that started in a small office in Menlo Park now helps shape the future of global tech.
And they’re still playing the long game.
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