Michael Moritz formula for successful companies
Interesting article of Michael Moritz, Partner of Sequoia, in the Financial Times last week.
He mentioned the danger to compare all the Silicon Valley founders with Adam Naumann, the founder of WeWork, that almost make WeWork bust due to his irrational, egocentric behaviour and his lavish lifestyle.
In his article, Michael reminded us of all the best characteristic of the real successful founders in the valley:
"Their founders will not be leading the lifestyles of the rich and famous. Instead, they will be strapped to the mast displaying single-minded devotion to their business, jealous of every minute that is not associated with the welfare and sustenance of their company.
Their reading lists will be long; they will be voracious in their willingness to learn from others; harbour insatiable curiosity; display a fetching mixture of supreme confidence and humility; and have a keen understanding of how to make the impossible possible.
They will also adopt healthy corporate habits in their early days, have a sound appreciation for how their company will become profitable and refuse to pursue a strategy for growth come what may. They will pay keen attention to unit economics, operating expenses, cash balances, positive cash flows and dilution.
The founders of the flagship technology companies of the past 50 years — Intel, Cisco, Qualcomm, Amazon, Facebook, Google, Microsoft, Apple, Oracle, Alibaba and Tencent — have all shared these traits and that is true for today’s best privately held companies."