Also, $5M is a small amount for Sequoia - and it would have been a hassle to deal with, and frankly, probably already written off.
If you have a good founder and a team already moving ... $5M is actually enough to get a small team moving in a new direction so it's a smart choice.
It's a smart choice in modern Valley language though, instinctively, most other investors would have not done that.
While we can give credit to the investors, that only works in a system of plentiful bounty. You need to have large acquirers, tons of talent, etc. etc. in order for that investment logic to make sense.
Also, $5M is a small amount for Sequoia - and it would have been a hassle to deal with, and frankly, probably already written off.
If you have a good founder and a team already moving ... $5M is actually enough to get a small team moving in a new direction so it's a smart choice.
It's a smart choice in modern Valley language though, instinctively, most other investors would have not done that.
While we can give credit to the investors, that only works in a system of plentiful bounty. You need to have large acquirers, tons of talent, etc. etc. in order for that investment logic to make sense.