Hustler Words – Roelof Botha, a managing partner at Sequoia Capital, ignited a debate at Hustler Words Disrupt 2025 by challenging the conventional wisdom surrounding venture capital. Botha asserted that VC should not be considered a traditional asset class, arguing that simply injecting more capital into Silicon Valley does not guarantee the creation of more successful companies.
During a main stage interview at the Hustler Words conference on Monday, Botha stated, "Investing in venture is a return-free risk." He elaborated, explaining that venture capital’s historical lack of correlation with other asset classes has led many allocators to believe that increasing investment in VC is a sound strategy. However, Botha countered that the number of truly impactful companies is limited.
"In my opinion, throwing more money into Silicon Valley doesn’t yield more great companies. It actually dilutes that; it actually makes it harder for us to get that small number of special companies to flourish," Botha emphasized. He pointed out the dramatic increase in the number of venture firms in the U.S., from 1,000 when he joined Sequoia in 2003 to the current count of 3,000.
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Botha highlighted the significant technological advancements that have occurred since he joined Sequoia, including the rise of mobile devices and cloud computing, as well as the expansion of internet access. He noted that while the venture capital industry has seen substantial outcomes, with roughly $380 billion+ in the last 20 years, he believes that simply pouring more money into the industry will not guarantee continued success.
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