Sequoia is the latest VC firm urging you to take the downturn seriously

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Sequoia picks things up Seriously. The legendary venture capital firm has been known to respond to macroeconomic events with grandiose memos aimed at portfolio companies and sometimes the entrepreneurial scene as a whole.

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Most recently, Sequoia created a deck of 52 slides, first reported by The Informationtitled “Adaptation to Endurance”. The document reads like a follow-up to his infamous untimely March 2020 Coronavirus: Black Swan memorandum.

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The firm isn’t always right in its predictions—maybe that’s why it settled on internal speculation this time rather than posting on Medium—but it does the service by providing a snapshot of how one of the most weathered and successful venture capital firms of all time thinks about the impending recession.


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“Our intention to gather today is not to be a beacon of darkness,” the deck says. “But we also believe that winning in the coming years will depend on making hard, decisive decisions in the face of uncomfortable challenges that may have been masked by the abundance and distortions of free capital over the past two years.”

Sequoia’s board pretty much followed the same script other VC firms have used: expand the runway, focus on sustainable growth, and acknowledge that the economic recovery may still be a long way off. There were, however, some tidbits that stood out, such as a sub-tweet that I assume is for Tiger Global and a precise explanation of how the founders should define fluff these days.

The supplier of capital blames capital itself for this – capitalism, right?

One of the most prominent tweets in the deck is Sequoia’s comment about cross funds. The firm says that at the moment “cheap capital is not going to help”:


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