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Sequoia takes issues severely. The storied enterprise agency is understood to react to macroeconomic occasions with grand memos aimed toward portfolio corporations and typically the entrepreneurship scene at massive.
Most not too long ago, Sequoia created a 52-slide deck, first reported by The Info, titled “Adapting to Endure.” The doc reads like a follow-up course to its infamously ill-timed “Coronavirus: The Black Swan of 2020” memo of March 2020.
The agency will not be all the time proper in its prognostications — perhaps why it caught to inner musings as a substitute of a Medium submit this time — nevertheless it does do a service in offering a snapshot of how one of the vital weathered, and profitable, VC corporations of all time thinks a couple of looming downturn.
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“Our intention in gathering at present is to not be a beacon of gloom,” the deck reads. “However we additionally imagine that profitable within the years forward goes to rely upon making exhausting, decisive decisions confronting uncomfortable challenges which will have been masked throughout the exuberance and distortions of free capital over the previous two years.”
Sequoia’s recommendation largely adopted the identical script that different enterprise corporations have been utilizing: lengthen runway, deal with sustainable development and acknowledge that an financial restoration could also be a methods away. There have been, nonetheless, some tidbits that stood out, similar to a subtweet that I’m guessing is supposed for Tiger International and a exact clarification of how founders ought to outline fluff today.
The capital supplier blames capital itself — capitalism, huh?
One of many clearest subtweets inside the deck is Sequoia’s commentary on cross-over funds. The agency says that “low cost capital will not be coming to the rescue” at this second:
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