Sequoia is the latest VC company to tell you to take the downturn seriously –


Sequoia takes things on seriously. The legendary venture firm has been known to respond to macroeconomic events with grand memos targeting portfolio companies and sometimes entrepreneurship in general.

Most recently, Sequoia made a 52-slide deck, first reported by The Information, titled ‘Adapt to Endure’. The document reads as a follow-up to his infamously ill-timed “Coronavirus: The Black Swan of 2020” memo from March 2020.

The company isn’t always right in its forecasts – perhaps why this time it stuck with internal musings rather than a Medium message – but it does deliver a service by taking a snapshot of how one of VC’s most weathered and successful Businesses of all time think of an impending downturn. is holding a Memorial Day sale. You can temporarily save 50% on annual subscriptions.

“Our intent with our meeting today is not to be a beacon of gloom,” the deck reads. “But we also believe that winning in the coming years will depend on making hard, decisive choices that face uneasy challenges that may have been masked during the exuberance and disruptions of free capital over the past two years. “

Sequoia’s advice largely followed the same script that other venture firms have used: extend the runway, focus on sustainable growth, and recognize that an economic recovery may still be a long way off. However, there were some tidbits that stood out, such as a subtweet that I suspect is intended for Tiger Global and an accurate explanation of how founders should define fluff these days.

The provider of capital blames capital itself – capitalism, doesn’t it?

One of the most obvious subtweets in the deck is Sequoia’s commentary on crossover funds. The company says that “cheap capital isn’t coming to the rescue right now”:


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