Sir Michael Moritz , who has invested in Silicon Valley’s most famous public companies, including Google, LinkedIn and Yahoo, finds many virtues among Indian founders like being enormously persistent, extremely hardworking and ability to do a lot with little.
The Chairman of the venture capital firm Sequoia Capital advised an audience of Indian software product companies in Bengaluru that founders such as Steve Jobs, Bill Gates and Elon Musk achieved success because they were obsessed by the pursuit that they went into to create a company.In an interview with Peerzada Abrar , Mr. Moritz who got to know young Steve Jobs, co-founder of Apple while writing a book on the iconic computer maker, says the balance of power is shifting towards China. Edited Excerpts:
What is the change you are seeing in the Indian start-up ecosystem?
Well, it is obviously a very pronounced changed. India today is clearly aligned with the entrepreneurs who are alert to business opportunities that present themselves both in India and elsewhere in the world. And, it is also clear that compared to a decade or twenty years ago, the stigma of working with somebody very smart and young, stigma associated with working with an unknown company in many quarters has dissipated massively. So, the change is quite dramatic.
You said that you believe in the future of drones and robotisation. Would you make such bets in India?
Oh, you need to talk that to the India team about that. I am here principally for [24]7, an information technology company that makes customer service and sales simple and is backed by Sequoia.
I am on this trip because the company celebrated very big milestone which was its 15th anniversary and inaugurated a large brand new 14-storey building here in Bengaluru and has all its clients and customers in town. It is also probably one of those companies that many in today’s entrepreneurship take a look at, because of what it has been able to do is it has evolved and developed and turn from services company to products company. And, also unlike of so many of today’s companies, it is handsomely profitable.
Lot of firms, especially consumer Internet firms, in India are being tagged as ‘unicorn’ companies, and are grabbing headline with sky-high valuations. Are these valuations justified?
I am not wandering even close to that question.
Seven of the world’s 20 most valuable start-ups are based in China, including smartphone-maker Xiaomi. Is the balance of power shifting? And, what kind of role is India going to play in this shift?
In the last fifteen years, if there is one story in the world of technology, it is about the rise of China. And, if people aren’t alert to that today, they soon will be. China presents a good opportunity for companies outside of the country. And, the Chinese companies are very alert to the potential what they can do outside China. India has this long deep connection with the West. There are so many bright people here who have studied in the West, who have a foot in both worlds, and who should be able to develop companies that can bridge both the worlds. Presumably that would happen in couple of decades.
How did you pick investments in Google, Yahoo and LinkedIn?
It’s me. I must have slept well.
What is the future of venture investing? Kauffman Foundation points out that venture capital delivers lower returns than public markets.
Well, there are few venture firms, I like to think we are included, that have delivered very good returns for a very long time.
And, the bunch, most venture firms have not been able to do that, but that always has been the case.
And, I think it is like any competitive business where you will have a few that will do well and others struggle.
What is the best day in your life?
If I am never going to be allowed home, I would say one of the three things, it was either the day I got married or the birth of each of my children.
