Humble BeginningsTrue Entrepreneur Tales

Alfred LinFebruary 9, 2011

Steve Jobs

2011

Consumer electronicsStage Sector Investment

Venture Technology $100,000

Steve Jobs &Steve Wozniak

1976

John Riccitiello

2011

Consumer entertainment softwareStage Sector Investment

Venture Technology $900,000

Trip Hawkins

1982

John Chambers

2011

Internet hardware, software & servicesStage Sector Investment

Venture Technology $1,900,000

Sandy Lerner &Len Bosack

1987

Carol Bartz

2011

Internet communications, commerce & mediaStage Sector Investment

Venture Internet $900,000

Jerry Yang & David Filo

1994

Eric Schmidt

2011

Ultimate search engineStage Sector Capital Consumed

Venture Internet $6,000,000

Larry Page & Sergey Brin

1998

Max Levchin, Peter Thiel & Elon Musk

2011

Scott Thompson

Field Link“BEAM MONEY”

1998

Stage Sector Investment

Venture Financial $3,700,000

Digital payments services

Max Levchin, Peter Thiel & Elon Musk

Tony Hsieh

2011

Shoe retail servicesStage Sector Investment

Growth Internet $1,100,000

Nick Swinmurn

1999

Jonathan Kaplan

2011

One-time-use camerasStage Sector Investment

Venture Internet $3,500,000

Jonathan Kaplan

2001

Steve Chen &Chad Hurley

2011

Internet mediaStage Sector Investment

Venture Internet $3,500,000

Steve, Chad & Jawed

2005

Omar Hamoui

2011

Stage Sector Investment

Venture Mobile $3,300,000

Mobile advertising marketplace services

Omar Hamoui

2006

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Commonalities

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They Were Once In Your Shoes

26

The Founders Code™

✔ Underdogs

✔ Insight

✔ Personal

✔ Focused

✔ Unconventional

✔ Iterate

✔ Agility

✔ Relentless

✔ Long-term

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Elements of a Sustainable Company

✔ Clarity of purpose

✔ Spectacular market

✔ Alleviate customer pain

✔ Team DNA

✔ Singular product

✔ Real operating margins

✔ Frugality

✔ Inferno with a single match

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Q&A

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Apple Sales

FOUNDERFIRED

FOUNDER RETURNS

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The Wilderness Years

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Apple’s “Adults”

JOHN SCULLEY

1983 – 1993

MICHAEL SPINDLER

1993 – 1996

GIL AMELIO

1996 – 1997

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Newton

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Michael Dell October 1997

“What would I do? I’d shut it down

and give the money back to the

shareholders.”

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Think Different

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Relentless Product Innovation

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Software as the Secret Ingredient

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Branded Experiences

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People Personifying the Brand

181 US Stores 28 Non-US Stores 12,000 Retail Employees

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Disrupting Markets

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New Markets

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Apple iPhone Sales

$40

$10

$0

$20

$30

1999 2001 2003 2005 2007 2009

#K

1999 2001 2003 20052007 20092008

20

10

5

15

0

#K

20

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Apple Application Downloads

2007 20092008

20

15

10

5

0

#M

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Apple Gross Margin

$40

$10

$0

$20

$30

%

1997 1999 2001 2003 2005 2007 2009

40

40

40

40

40

40

30

20

10

0

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Apple Market Capitalization

$40

$10

$0

$20

$30

%

40

40

40

40

40

40

30

20

10

0

$B

1997 1999 2001 2003 2005 2007 2009

$200

$150

$100

$50

$0

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2011

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Thank You

lin [at] sequoiacap.com