20VC: Sequoia Partner, Pat Grady on Why Data Is The New Oil, Why We Will See The Return of The Apprenticeship Model in VC & The Defining Characteristics of The Next Generation of Great Software

Sequoia Capital partner Pat Grady examines the evolving landscape of venture capital, emphasizing the firm’s reliance on tribal knowledge and the apprenticeship model over the current trend of prioritizing operator-only backgrounds. Software’s next generation will transcend simple business model transitions, instead leveraging a virtuous cycle where superior design drives usage, which in turn generates data to further refine design. While large incumbents currently hold an advantage due to their massive data reserves, startups can compete by narrowing their focus or creating unique data moats. Innovation is increasingly democratized, shifting the global balance of power as companies scale across borders. Success in this environment requires deep cultural awareness, as evidenced by the distinct design preferences in Eastern markets compared to the West, and a relentless commitment to an underdog mentality despite past achievements.