Sequoia will take things significantly. The storied undertaking company is identified to react to macroeconomic occasions with grand memos aimed at portfolio businesses and sometimes the entrepreneurship scene at large.
Most just lately, Sequoia produced a 52-slide deck, a adhere to-up system to its infamously sick-timed “Coronavirus: The Black Swan of 2020” memo of March 2020., titled “Adapting to Endure.” The doc reads like
The company is not always ideal in its prognostications — it’s possible why it caught to inner musings as an alternative of a Medium put up this time — but it does do a service in furnishing a snapshot of how a person of the most weathered, and productive, VC companies of all time thinks about a looming downturn.
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“Our intention in gathering right now is not to be a beacon of gloom,” the deck reads. “But we also think that winning in the decades ahead is heading to depend on generating difficult, decisive choices confronting not comfortable difficulties that may possibly have been masked during the exuberance and distortions of absolutely free funds more than the past two several years.”
Sequoia’s guidance largely followed the exact same script that other undertaking corporations have been applying: prolong runway, concentration on sustainable development and acknowledge that an financial recovery could be a ways away. There ended up, on the other hand, some tidbits that stood out, this kind of as a subtweet that I’m guessing is intended for Tiger Global and a exact rationalization of how founders really should determine fluff these days.
The money service provider blames cash itself — capitalism, huh?
A person of the clearest subtweets within the deck is Sequoia’s commentary on cross-around money. The firm states that “cheap money is not coming to the rescue” at this second: