#1FOUNDER ALL HANDS MAY 2022 Adapting to Endure SEQUOIA#2ROELOF BOTHA Why We're Here SEQUOIA#3What We'll Cover SEQUOIA CONFIDENTIAL Why We're Here The Macro Environment The Public Markets What History Tells Us How to Emerge Stronger Leading From the Front What's Next Roelof Botha Kevin Kelly Jeff Wang Doug Leone Alfred Lin Carl Eschenbach Roelof Botha#4KEVIN KELLY, SEQUOIA HERITAGE SEQUOIA The Macro Environment#5COVID fiscal mandate: massive monetary stimulus Federal Reserve's Balance Sheet W$ 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 SEQUOIA CONFIDENTIAL 1/5/2005 Treasury Securities Mortgage-backed Securities Other 1/5/2022#6The new Fed mandate: control inflation, tighten liquidity conditions Forward Rate Expectations 3.0 Last Price 2.0 1.0 0.0 SEQUOIA CONFIDENTIAL 7/1/21 9/1/21 11/1/21 1/1/22 3/1/22 5/1/22 10x SINCE 9/21#7Capital was free. Now it's expensive. SEQUOIA CONFIDENTIAL When capital was free, the best performing companies were capital consumptive. As capital has gotten expensive, these have become the worst performing companies. What are the other implications of capital being expensive? Given every dollar is more precious than it was, how are you going to change your priorities?#8JEFF WANG, SEQUOIA CAPITAL GLOBAL EQUITIES The Public Markets SEQUOIA#9We're experiencing the 3rd largest Nasdaq drawdown in 20 yrs SEQUOIA CONFIDENTIAL -28%#1061% of all software, internet and fintech companies are trading below pre-pandemic 2020 prices 80% 60% 40% 20% 0% SEQUOIA CONFIDENTIAL 53% Software 67% Internet 73% Fintech % Below Pre-Pandemic Price 61 % Total#111/3 are trading below COVID lows, when uncertainty and fear was peaking 80% 60% 40% 20% 0% SEQUOIA CONFIDENTIAL 25% Software 33% Internet 33% Fintech % Below Pre-Pandemic Price 29% Total#12Growth at all costs is no longer being rewarded EV / Revenue Multiples 12x 10x 8x 6x 4x 2x Ox SEQUOIA CONFIDENTIAL 10 YR AVERAGE 5.8x CURRENT 5.45x -6% BELOW AVG. EV / Revenue / Growth Multiples 1.0x 0.8x 0.5x 0.3x 0.0x 10 YR AVERAGE 0.4x CURRENT 0.26x - 34% BELOW AVG.#13Focus is shifting to companies with profitability Nasdaq 100 vs. Morgan Stanley Unprofitable Tech Index 100 75 50 25 0 12/1/21 SEQUOIA CONFIDENTIAL 1/1/22 2/1/22 - QQQ US Equity 3/1/22 MSXXUPT Index 4/1/22 5/1/22 NASDAQ 100 - 28% MSXXUPT -64%#14Cheap capital is not coming to the rescue 100% 75% 50% 25% 0% SEQUOIA CONFIDENTIAL 30% 70% Before 30% Max Private Capacity Public down 30% Public Private 38% 62% After 8% Over Capacity#15Medium to long-term: durable growth with improving profitability is always the path Revenue CAGR vs. Stock Price CAGR from IPO to 2021 Stock Price CAGR 150% 100% 50% 0% 0% SEQUOIA CONFIDENTIAL 20% Hubspot 40% Revenue CAGR Okta ServiceNow MongoDB Square 60% Spotify 80%#16DOUG LEONE SEQUOIA What History Tells Us#17The pain SEQUOIA CONFIDENTIAL Pandemic Too much stimuli War Supply chain issues QE drug INFLATION The Economist Our French election forecast model Joe Rogan, Spotify and free speech Florida's lurch to the right Businesses battle for talent HOW HIGH WILL INTEREST ´RATES GO? TIME THE RETURN OF HISTORY How Putin Shattered Earope's Dreams Ukraine's Minsky moment The Indian democracy: festive but fraying Economist acting a bipartisan scandal Xi Jinping's thinker-in-chief When the ride ends What would happen if the markets crashed?#18Recovery will be long EA SEQUOIA CONFIDENTIAL TIME#19Who survives? SEQUOIA#20Adaptability "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." CHARLES DARWIN#21Survival of the Quickest EXPENSES SEQUOIA CONFIDENTIAL 5/2022 TIME The Death Spiral Company A Company B#22Choices What decisions do you plan to make. SEQUOIA CONFIDENTIAL VS. What decisions do you wish you had made.#23Opportunities "You cannot overtake 15 cars in sunny weather... but you can when it's raining." AYRTON SENNA ED#24Who survives? Who wins? SEQUOIA CONFIDENTIAL Embrace reality Adapt quickly Pain of discipline < pain of regret Emerge stronger#25ALFRED LIN SEQUOIA How to Emerge Stronger Vall#26What do you do at a crucible moment? SEQUOIA CONFIDENTIAL#27"Chance only favors the prepared mind" LOUIS PASTEUR -—————#28How do you prepare? SEQUOIA#29How do you prepare? SEQUOIA CONFIDENTIAL Prepare your mind Prepare your team Prepare your company#30Prepare Your Mind SEQUOIA CONFIDENTIAL Confront your reality Confront your fear Courage over fear Crisis Opportunity#31Prepare Your Team SEQUOIA CONFIDENTIAL Start with Why Reaffirm your mission and values Showcase your leadership Align your team Ask for commitment#32Prepare Your Company SEQUOIA CONFIDENTIAL Cash & cash flow Create financial degrees of freedom Concentrate investments in your future Constraints → Creativity#33Board update April 5#34Problem Once in a generation crisis Make sure Airbnb is around for future generations#35Principles Be decisive! Preserve cash Act with all stakeholders in mind Emerge as role models, not villains Play to win 2021 travel season Don't trade in the future#36We need to do four things Raise money Manage our stakeholders Diversify our business Cut costs#37CARL ESCHENBACH Lead From the Front SEQUOIA#38Change is inevitable. Growth is optional." JOHN C. MAXWELL#39CHANGE WHAT ARE YOUR OPTIONS SEQUOIA Wishful thinking is a waste of time. Don't sit around talking about 'the good ole days' with hope they'll return.#40CHANGE - WHAT ARE YOUR OPTIONS SEQUOIA This is the age of instability where managing change is everyone's job. Think of it as your personal assignment.#41"If the world outside your company is changing faster than the world inside your company, the end is near.” JACK WELCH 20% FIGHT 20% CHANGE 60% WATCH#42Leadership Principles SEQUOIA CONFIDENTIAL Communicate Conviction Confidence Calmness Be authentic Be human Balance optimism and realism#43Strategies for Uncertain Times SEQUOIA CONFIDENTIAL Simplicity scales, complexity doesn't Speed is one of the greatest business strategies Double down on your top talent Alignment over agreement Tighten up value proposition to drive sales If it's not one of these, it's fluff: Drives revenue growth Saves money (strong ROI) Reduce risk#44Push vs. Pull Leadership SEQUOIA CONFIDENTIAL PUSH Motivational Pushing = PULL Inspirational = Pulling#45ROELOF BOTHA What's next? SEQUOIA#46Upcoming Breakouts for Early and Growth Runway Extension Leadership in Uncertain Times SEQUOIA CONFIDENTIAL Forecasting & Scenario Planning Fundraising in Difficult Markets#47Q&A SEQUOIA#48SEQUOIA