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EUREKA!AND OTHER ELEMENTS OF A SUSTAINABLE COMPANY
THEY WERE ONCE IN YOUR SHOES
FRUSTRATION, RESIGNATION, INNOVATION
SOLVED APROBLEM FORTHEMSELVES
CISCO
APPLE
ADMOB
YOUTUBE
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?
