Sir Michael Moritz, a Welsh-born American billionaire, has established himself as one of the most successful venture capitalists in history. With a career spanning nearly four decades at Sequoia Capital, Moritz has made some of the most profitable investments in tech history.
Over the years, Moritz has demonstrated a unique ability to identify promising startups before they become household names. His early recognition of technology’s transformative potential led to investments in companies like Google, Yahoo!, and PayPal. At one time, Moritz was a staff writer at Time magazine, showcasing his versatility and keen insight into the tech industry.
Key Takeaways
- Michael Moritz has had a remarkable career spanning nearly four decades at Sequoia Capital.
- He has made significant investments in tech giants like Google, Yahoo!, and PayPal.
- Moritz’s background as a journalist has contributed to his success as a venture capitalist.
- He has been recognized as one of the top venture capitalists on the Forbes Midas List.
- Moritz recently stepped down from his partnership role at Sequoia Capital in July 2023.
Early Life and Career Path
Michael Moritz was born on September 12, 1954, in Cardiff, Wales, to a Jewish family. His early life and education played a crucial role in shaping his future career.
Welsh Origins and Education
Family Background and Early Education
Moritz’s father, Ludwig Alfred Moritz, was a professor of Classics at Cardiff University and later became its Vice Principal (Administration) in the 1970s. His mother, Doris (née Rath), also fled Nazi Germany. This background likely influenced Moritz’s academic pursuits. He attended Howardian High School in Cardiff.
Oxford and Wharton Education
Moritz earned a bachelor’s degree in history at Christ Church, Oxford. He furthered his education by earning an MBA from the Wharton School of the University of Pennsylvania in 1978 as a Thouron scholar. This educational foundation was pivotal in his transition to a career in journalism and later, venture capitalism.
Journalism Career at Time Magazine
Covering the Tech Industry
Moritz began his career as a journalist, working for many years before joining Time Magazine. In the early 1980s, he was a reporter covering the tech industry, which marked the beginning of his association with Apple and Steve Jobs.
The Apple Story and Steve Jobs
Steve Jobs contracted Moritz to document the development of the Macintosh for a book project. This led to the publication of “The Little Kingdom: The Private Story of Apple Computer,” establishing Moritz as an authority on Apple and the personal computing revolution. By late 1982, Moritz was Time’s San Francisco Bureau Chief, working on a special issue that was initially supposed to feature Jobs.
| Year | Event | Publication/Outcome |
|---|---|---|
| 1982 | Contracted by Steve Jobs to document Macintosh development | “The Little Kingdom: The Private Story of Apple Computer” |
| 1982 | Time’s “Machine of the Year” issue | Special issue initially intended to feature Steve Jobs |
| 2007 | Revisiting Apple’s story | “Return to the Little Kingdom” |
Michael Moritz – Venture Capitalist, Sequoia Capital Partner
In 1986, Michael Moritz transitioned into the world of venture capital by joining Sequoia Capital, a firm that would become synonymous with his success. This move marked a significant shift in his career, leveraging his journalistic background to inform his investment strategies.
Joining Sequoia Capital in 1986
Transition from Journalism to Venture Capital
Before joining Sequoia Capital, Moritz had established himself as a prominent journalist, co-authoring Going for Broke: The Chrysler Story with Barrett Seaman. His experience in journalism provided a unique perspective on the tech industry, allowing him to identify promising startups. After leaving Time, Moritz co-founded Technologic Partners, a technology newsletter and conference company, further honing his expertise in the tech sector.
Early Years at Sequoia
Moritz’s early years at Sequoia Capital were marked by a series of strategic investments that would define his career. He quickly adapted to the venture capital landscape, utilizing his knowledge of emerging technologies to guide the firm’s investment decisions. As a partner at Sequoia Capital, Moritz played a crucial role in shaping the firm’s investment portfolio.
Notable Investments and Success Stories
Google, Yahoo!, and PayPal Investments
Moritz’s investment track record is highlighted by his early investments in Google, Yahoo!, and PayPal. These investments not only yielded significant returns but also demonstrated Moritz’s ability to identify transformative technologies. Google, in particular, was a notable success, with its initial public offering in 2004 making Moritz one of Wales’ richest men.
Later Investments: LinkedIn, Stripe, and Klarna
In addition to his early successes, Moritz continued to make savvy investments in companies like LinkedIn, Stripe, and Klarna. His investment in LinkedIn showcased his understanding of professional networking platforms, while his backing of Stripe and Klarna highlighted his insight into evolving financial technologies. These investments underscored Moritz’s adaptability and continued relevance in the venture capital landscape.
Moritz’s involvement with these companies often extended beyond initial funding, as he provided strategic guidance through multiple growth phases. His role as an investor and partner at Sequoia Capital allowed him to leverage his expertise to drive success in the companies he supported.
Impact on the Tech Industry and Recognition
Through his work at Sequoia Capital, Michael Moritz has played a crucial role in shaping the tech industry, backing some of its most innovative companies. His investment philosophy and approach have been instrumental in identifying and nurturing startups that would go on to become industry leaders.
Investment Philosophy and Approach
Michael Moritz is known for his meticulous approach to investing, focusing on companies with strong growth potential and innovative solutions. His strategy involves:
Identifying Promising Startups
Moritz looks for startups with unique value propositions, scalable business models, and talented founding teams. This approach has enabled Sequoia Capital to invest in companies like Google early on, yielding significant returns.
Long-term Investment Strategy
Unlike some investors who seek quick gains, Moritz adopts a long-term perspective, supporting companies through various stages of their growth. This patient approach has fostered strong relationships between Sequoia Capital and its portfolio companies.
Awards and Accolades
The success of Michael Moritz‘s investment strategy is reflected in the numerous awards and accolades he has received. Notably, his investment in Google helped him achieve the number-one listing in Forbes’ “Midas List” in 2006 and 2007.
Forbes Midas List Rankings
Moritz has consistently ranked high on the Forbes Midas List, a testament to his deal-making prowess in the tech industry. He was ranked number two on the list for 2008 and 2009, further solidifying his reputation as a top investor.
Knighthood and Honorary Fellowships
In recognition of his contributions to the tech industry and venture capital, Moritz has received prestigious honors, including knighthood and honorary fellowships. These accolades underscore his influence and respect within the industry.
Stepping Down from Sequoia Capital
After nearly four decades with Sequoia Capital, Michael Moritz stepped down in July 2023 to focus on Sequoia Heritage, a wealth-management fund he helped launch. This transition marked a significant shift in his career.
Health Challenges
In May 2012, Moritz announced that he had been diagnosed with a rare, incurable medical condition. This diagnosis led him to step back from his day-to-day responsibilities at Sequoia Capital while being elevated to the position of chairman.
Transition to Advisory Roles
Following his health diagnosis, Moritz transitioned to advisory roles, allowing him to maintain his influence while reducing operational responsibilities. He remains on the boards of companies like Stripe, Klarna, and Instacart, though these seats are expected to transition over time.
Philanthropy and Legacy
Beyond his successful career in venture capital, Michael Moritz has demonstrated a profound commitment to giving back through various philanthropic initiatives. As a signatory of The Giving Pledge, Moritz has committed to donating at least 50% of his wealth to charitable causes, solidifying his position among the world’s most generous philanthropists.
Moritz’s philanthropic efforts have been focused on expanding educational access, with notable donations including a record-breaking £75 million gift to Oxford University in 2012. This donation provided scholarships for students from lower-income families, marking it as one of the largest financial donations to an undergraduate university in European history. Through Crankstart, the charity he established with his wife Harriet Heyman, Moritz has supported diverse causes including education, civil liberties, and cultural institutions.
As a partner at Sequoia Capital, Moritz not only made impactful investments but also influenced the venture capital industry through his investment approach and mentorship of younger partners. His legacy includes the companies he helped build and the investment principles he established, which continue to guide the firm’s approach. After stepping down from his partner role at Sequoia Capital in July 2023, Moritz announced his focus would shift to Sequoia Heritage, a $15 billion wealth management fund he helped establish.
Throughout his career spanning nearly four decades, Moritz maintained board positions at transformative companies, shaping how venture capital firms identify and support technology startups. His impact on Silicon Valley extends beyond individual investments, influencing the broader venture capital industry.