In 1982, with almost a decade of experience at IBM under his belt, Peter Wendell went "searching for the country's next IBMs," as he puts it. Enlisting the help of some friends (including classmate Gil Lamphere), he founded Sierra Ventures, a venture capital firm that focuses on early-stage information technology companies. "We had some good luck early on, and that made it easier to raise subsequent funds," says the humble New Jersey native, a Princeton graduate who, along with his wife, Lynn, is raising their six children. Today, with over $1 billion under management, the Menlo Park, California, company boasts an impressive list of multibillion dollar market cap successes, including Healtheon, Intuit, Micromuse, and Strata- Com. Wendell passes his craft on to students enrolled in a popular second-year venture capital course he has taught at Stanford Business School for the last decade.

First job
I was the summer maintenance boy at our local swim club — mowing lawns, cleaning toilets. You probably couldn't start much lower.

Inspirations
The entrepreneurs who start the companies that we fund. They're the ones who risk everything. We venture capitalists have a whole portfolio of companies. Some go great and some don't. But the individual entrepreneur has all his or her eggs in one basket. They are the real actors; we're just the stagehands.

Where the new economy is going
We've clearly had our excesses, but when the auto industry started there were a couple of hundred U.S. automakers, and look at how few there are now. Innovation and Darwinism have always gone hand in hand. But the information-driven economy is here to stay. Every organization is focused on how it can deliver services electronically, rather than physically. The cost-effectiveness of doing that, how to share information efficiently within a company, new ways to share information with suppliers and customers — those elements of the new economy are unstoppable.

How job has changed in last five years
Dramatic growth. Five years ago, the venture industry attracted annual capital of about $10 billion. In 2001, in its current "depressed" condition, the industry will attract $40 billion or more of fresh capital.

Key elements in evaluating a business proposal
Great people pursuing a big market with a plan that gives them a sustainable, almost "unfair" advantage.

Advice for current MBAs
Do something where you're actually responsible for operating some portion of a company. You can give sage advice later.

Pro bono work
Education. Lynn and I are very involved in the schools we attended and those that our six children attend. I've greatly enjoyed serving Princeton as a charter trustee and as a member of a small group that helps run its $8 billion endowment. My work at HBS on the Visiting Committee and in other capacities has also been fulfilling. Currently reading Business plans.

Biggest disappointment
When a company we back doesn't do well. In venture capital we take risks, and some companies fail. But after twenty years I still haven't learned to enjoy failure and defeat.

Proudest of
Building Sierra into a firm that has spawned some really great companies, attracted very talented general partners, and now has more than a billion dollars in equity. For a decade and a half the majority of our profits have gone back to our investors, who are dominated by America's great universities and foundations. So when we have a good result, those organizations have more capital to pay professors, build laboratories, and serve society's needs. It's a great virtuous circle in which I feel privileged to be a part.

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