Sequoia investors assess founders by vision, clarity and willingness to work for them

Sequoia investors describe a practical early-stage test for founder quality: would they personally work for this person—and effectively put 100% of their equity into the company? They say strong founders combine a compelling vision, relevant experience and a coherent explanation of the technology and market.

The investors also value clarity of thought and technical depth. A founder who can clearly explain why a plan makes sense may be better able to attract employees as well as investors; the ability to persuade may be partly innate, but can improve through experience and repeated fundraising.

For capital-intensive hardware companies, they argue that the ability to raise billions in later rounds can be as important as the underlying intellectual property. Investment decisions are based on extended relationships rather than a single pitch meeting, and there is no complete certainty in advance that a founder will raise all the capital needed at subsequent stages.