Pat Grady - Relentless Application of Force - [Invest Like the Best, EP.378]

My guest today is Pat Grady, a longtime growth investor at Sequoia and one of the firms senior leaders. Pat has been a part of a long list of legendary investments, ranging from Snowflake, Zoom, ServiceNow, Qualtrics, Okta, Hubspot, Notion, and OpenAI, among many others. There aren't many investors who reference as well at Pat, both inside and outside of his firm. We talk about investing, building an investing firm, and building enduring companies. Please enjoy this great conversation with Pat Grady. Listen to Founders Podcast For the full show notes, transcript, and links to mentioned content, check out the episode page here. ----- This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. ----- Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.  Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @patrick_oshag | @JoinColossus Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes: (00:00:00) Welcome to Invest Like the Best (00:05:48) Doug Leone's Leadership and Changes (00:06:54) Creating Internal Pressure and Structure (00:10:46) Sequoia's Team Values and Family Influence (00:13:40) Assessing Founders and Investments (00:20:28) Winning Competitive Investments (00:24:45) Pat’s Early Career at Sequoia (00:29:38) Memo Writing and Investment Criteria (00:35:20) Evaluating Companies Through Three Business Criteria (00:40:15) Building Sustainable Competitive Advantage (00:47:48) Turning Bad Numbers into Good Investments (00:51:20) The AI Frontier: Market and People (01:01:13) Harvey: The AI Legal Assistant (01:05:33) Sequoia's Platform Strategy (01:17:16) The Importance of Teamwork and Performance (01:26:07) Legendary Potential: Relentless Application of Force (01:28:37) The Kindest Thing Anyone Has Ever Done for Pat