Uncapped #36 | Pat Grady & Alfred Lin from Sequoia
Uncapped with Jack Altman
2025/12/09
Uncapped #36 | Pat Grady & Alfred Lin from Sequoia
Uncapped #36 | Pat Grady & Alfred Lin from Sequoia
Uncapped with Jack Altman
2025/12/09
In this insightful conversation, Pat Grady and Alfred Lin, the newly appointed co-stewards of Sequoia, reflect on the firm’s unique operating principles and the mindset required to lead one of venture capital’s most influential institutions. They emphasize a culture rooted in founder empowerment, intellectual honesty, and long-term thinking, where autonomy and accountability coexist within a structured yet flexible framework.
The discussion reveals how Sequoia focuses on identifying outlier startups by prioritizing conviction over consensus, with decision-making driven by deep expertise rather than hierarchy. The firm manages for inputs—like sourcing quality deals and rigorous internal evaluations—rather than unpredictable outcomes. A proprietary talent-mapping system helps assess engineering strength, while disciplined mid-funnel practices refine investment judgments over time. Success hinges on building authentic relationships with founders, offering strategic support without ego, and maintaining courage to back bold ideas despite uncertainty. The partners stress that great ventures evolve over decades, requiring patience, bias awareness, and a willingness to learn from past decisions. Their leadership approach centers on empowering individuals, preserving institutional memory, and fostering a culture where taking intelligent risks is encouraged—all in service of backing transformative companies from the earliest stages.
00:00
00:00
Internal data shows consensus doesn't matter—conviction does.
03:37
03:37
Influence should be given to experts rather than those with just tenure or formal hierarchy.
04:30
04:30
The job of a venture capital CEO is to set outlier team members free, not manage them.
09:25
09:25
Venture capital focuses on input metrics due to long-term outputs
17:22
17:22
The first indicator of good investment judgment is how new investors spend their time.
17:59
17:59
Decision quality matters more than coverage volume in early-stage investing.
22:36
22:36
The talent-mapping system can quickly assess an engineering team's percentile in a growth-stage company.
24:40
24:40
HubSpot transformed from a mediocre-product company by acquiring Performable's engineering team.
32:14
32:14
The best investments are made with strong conviction, not widespread agreement.
41:11
41:11
Wrong investment decisions often stem from psychological biases, not lack of analysis.
45:53
45:53
Mega legendary companies usually have multiple stages of development over decades.
46:45
46:45
The most important variables in startup investing are the market and the founder.
56:15
56:15
Passing on an investment with detailed feedback can strengthen long-term founder relationships
1:01:22
1:01:22
The two VC objectives: maximize share price and help founders build world-changing companies.
1:05:37
1:05:37
Success in software doesn't guarantee success in hardware—check your paradigms when transitioning.
1:08:48
1:08:48
Stability at the partnership level enables volatility at the partner level.
