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Sequoia takes everything very seriously. The venture capital firm is known for reacting to macroeconomic events with massive memos aimed at portfolio companies and sometimes the startup scene in general. Most recently, Sequoia created a 52-slide deck, first reported by The Information, titled Adapting to Stamina; this document is like a follow-up to the famous “Coronavirus: Black Swan of 2020” memo in March 2020.
The company hasn’t always been right in its predictions – which may be why they’ve stuck to insider thoughts this time rather than a Medium post – but it does perform a service in the offers a snapshot of how one of the most successful and out-of-the-box companies of all time thinks a recession is looming.
The set of articles: “Our intention in today’s gathering is not a harbinger of gloom. “But we also believe that victory in the years to come will depend on making tough, decisive choices in the face of unpleasant challenges that may have been obscured in development and distortion. of free capital over the past two years.”
Sequoia’s advice largely follows the same scenario other venture firms are using: widen the runway, focus on sustainable growth, and realize that an economic recovery may be a long way off. However, there are some tidbits that stand out, such as a subsite that I guess is for Tiger Global and an exact explanation of how the founders should define fluff today.
For full coverage of the topic, read my TechCrunch+ column, “Sequoia is the latest VC firm to want you to take the downturn seriously.” In the rest of this newsletter, we’ll cover a founder’s view of this moment in tech, a pitch and a deal that may already be on your radar. in this week. As always, you can support me by forwarding this newsletter to a friend or follow me on twitter or sign up my blog.
Let’s have a heart to heart
On Equity this week, Heart to Heart CEO Josh Ogundu Join us to talk about His view on the early-stage founders market. Ogundu told us what he is rethinking, the importance of honesty and what to do before considering a layoff. It’s not too often that we have guests on the show, so when we do, you know it’s going to be a good show.
Here’s why it’s important: Lots of advice, like the introduction to this newsletter, from investors. However, founders are people who live change and make tough decisions, so consider this episode an overdue fact check.
Pitch Deck Teardown
Our own Haje Jan Kamps started a weekly series in which he reviews a startup’s offering as a witty columnist. Most recently, he revisited Lumigo’s Series A pitching platform that helped the startup reach $29 million.
Here’s why it’s important, in his words: “I’ve coached startups for a long time, and the #1 challenge we always face is no shortage of advice on how to do it. show a good salutation (fuck, I wrote a book about it), but what’s always been missing is a good library of real pitch decks, which have been successful in raising money. When I rejoined TechCrunch and started talking to founders about funding rounds, I realized this could be my opportunity. In this week’s tears, we talk about what works with the deck and where the company can improve further. This is information not available anywhere else and it has been an interesting project so far! ”
Trading of the week
It certainly seems like the layoffs are the new story on the funding round, but I think it helps to balance the doom and gloom with some growth-focused news. And no, I’m not just talk about new crypto funds. This week, Planet FWD announced that they made $10 million so that the consumer products industry can track carbon emissions. No problem.
This is why it’s important through reporters Christine Hall: “Time is of the essence in reducing emissions, with [CEO Julia Collins] notes that there are less than 100 months left to meet the 2030 global target of cutting greenhouse gas emissions by at least 40% from 1990 levels. She added, household consumption such as food, impacts land, energy and water, accounts for 60% of global emissions”.
Seen on TechCrunch
Seen on TechCrunch +
Until next time,