How to build a $100bn company in Europe, with Sequoia's Luciana Lixandru

**Luciana Lixandru** (0:02)
We have high-quality talent that's mission driven, that is loyal, build your tech and product in Europe, but then you have to win the US from a commercial perspective.

**Amy** (0:12)
Hello, and welcome to The Sifted Podcast, the show where we help you get to know the brightest and boldest people in Europe's startup ecosystem. I'm Amy, Sifted's editor. And today's episode of The Sifted Podcast is a fireside chat with Luciana Lixandru, partner at VC firm Sequoia Capital, recorded live at the Sifted Summit in London in October. I hope you enjoy this conversation as much as I did. Hello. I'm delighted to be here with one of Europe's best respected investors, Luciana Lixandru from Sequoia Capital. Luciana, welcome to the Sifted Summit.

**Luciana Lixandru** (0:48)
Thank you so much for having me. I'm delighted to be here and I look forward to our conversation.

**Amy** (0:52)
So you joined Sequoia back in 2020 from Accel. It was quite the news when it was announced and you kind of opened up the London office. It was a huge thing for them to kind of finally come and establish themselves in Europe. And at the time, I read back on one of our, my former colleagues interviews with you. You said that your mission was to find Europe's first $100 billion company. How's that going?

**Luciana Lixandru** (1:18)
Yeah, that's a great question. Yeah, you know what, Sequoia, we started in the Valley a long time ago, over five decades ago. And I think the firm and my partners kept on being pulled into Europe because they saw that there is so much talent and that the ecosystem is evolving. So they made the decision to expand here. And I was fortunate enough to join five years ago exactly and to help us set up our European business together with my other partners. You know, I like to think about where we are in Europe from a tech ecosystem as Act 2 So what do I mean by that?
I've been in venture since December 2011, so a while. And I remember at the time, we were being asked constantly, can Europe consistently generate billion dollar companies? So that was the question back in 2011, 2012, 13 And then I think we can say a resounding yes. And then a few years later, around 16, 17, 18, the question was, can Europe consistently create deca-corns? And again, I think now a few years later, we can say yes. So what do I mean by act two? I think now it's time to really focus our dreams, our ambitions, our resources towards helping build these generational companies. These companies that take a really long time to build and can compound and thrive for a really long time. So we say a hundred billion dollar companies as a metaphor for building these generational businesses that my daughter may use hopefully their products or work at one of these companies. And I'm really excited for act two. Every year we organize an event called Europe 100, where we get together a hundred growth stage founders from Europe and some of the greatest minds that care about Europe. And we actually just had this event last weekend, and we organized it with our partners at Founders Forum. And I just left with a feeling that it's inevitable that it will happen. And I do think, I'm sure we'll talk about AI. I'm sure we won't wait for 25 minutes on this panel. But I do think that AI is one of the core drivers of this renaissance in the European ecosystem. And I feel, I feel good. I feel good. I think we're on the right track. We can always do more. And of course, many things are against us, as the great panelist before me mentioned. But I think we're on the right track for those generational companies, you know, for Act, too, for Europe.

**Amy** (3:47)
Who do you think, within and without the Sequoia portfolio, some of those potentially generational companies are right now?

**Luciana Lixandru** (3:56)
So many. Obviously, since we talk about these businesses that that hopefully reach an incredible scale, I'll just focus on the later stage companies, right? The very obvious one that is not as Sequoia's portfolio is Revolut. I mean, it's just incredible what the company has accomplished. I'm a user.
I love it. I think from a valuation perspective, they're almost there based on public numbers. I think in Sequoia's portfolio, there are many that I can think of that have this potential. The one that comes to mind, I'll have to say Trade Republic. Interesting, right, that both are in fintech. I think we can talk about that. I think Europe has a real edge when it comes to fintech, and I think we really hold our own on a global stage. But, yes, I will put my money on Trade Republic, but many others. I can't sit here and talk about a seed stage company or a series A company that has that potential, because you may call me crazy. But in my heart of hearts, we work with many founders that I think, think of this business as their life's work. And if you think of your company as your life's work, that means you focus on decades ahead. You don't focus on the year ahead. So the team at Penny Lane, for example, they're building a modern AI accounting platform, and then financial operating system for SMEs. There are 500,000 SMEs and growing fast. Well, this team right after college sold the company to booking. And then the second time around, they want to go bigger, better, bolder. And I can see them building this business in 20 years from now.