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HomeMobileFootnotes on Sequoia’s startup memo – TechCrunch

Footnotes on Sequoia’s startup memo – TechCrunch


Welcome to Startups Weekly, a contemporary human-first tackle this week’s startup information and tendencies. To get this in your inbox, subscribe right here.

Sequoia takes issues critically. The storied enterprise agency is thought to react to macro-economic occasions with grand memos geared toward portfolio firms, and generally the entrepreneurship scene at giant. Most just lately, Sequoia created a 52-slide deck, first reported by The Data, 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 — which is perhaps why it caught to inner musings as an alternative of a Medium submit this time — but it surely does do a service in offering a snapshot of how one of the vital weathered, and profitable, companies of all time thinks a couple of looming downturn.

“Our intention in gathering as we speak is to not be a beacon of gloom,” the deck reads. “However we additionally consider that successful within the years forward goes to rely on making arduous, decisive selections confronting uncomfortable challenges that will have been masked through the exuberance and distortions of free capital over the previous two years.”

Sequoia’s recommendation largely adopted the identical script that different enterprise companies have been utilizing: prolong runway, deal with sustainable progress and acknowledge that an financial restoration could also be a methods away. There have been, nonetheless, some tidbits that stood out, akin to a subtweet I’m guessing is for Tiger International and a exact rationalization of how founders ought to outline fluff lately.

For my full tackle this subject, learn my TechCrunch+ column, “Sequoia is the newest VC agency that desires you to take the downturn critically.” In the remainder of this text, we’ll usher in a founder’s perspective on this second in tech, a pitch deck teardown and a deal that will have flown underneath your radar this week. As all the time, you may help me by forwarding this text to a buddy or following me on Twitter or subscribing to my weblog.

Let’s have a Coronary heart to Coronary heart

On Fairness this week, Coronary heart to Coronary heart CEO Josh Ogundu joined us to speak about his perspective available on the market for early-stage founders. Ogundu informed us what he’s rethinking, the significance of honesty and what to do earlier than contemplating a layoff. It’s not too typically that we now have visitors on the present, so after we do, you understand it’s going to be an excellent one.

Right here’s why it’s vital: A lot of the recommendation, as this text’s intro exhibits, has come from buyers. But, founders are those dwelling the change and making the arduous choices, so think about this episode an overdue actuality test.

Picture Credit: Bryce Durbin/TechCrunch

Pitch Deck Teardown

Our personal Haje Jan Kamps has began a weekly collection wherein he evaluations a startup’s pitch deck within the form of a witty column. Most just lately, he reviewed Lumigo’s Sequence A pitch deck that helped the startup land a $29 million spherical.

Right here’s why it’s vital, in his phrases: “I’ve been teaching startups for a very long time, and the No. 1 problem we all the time run into is that there’s no scarcity of recommendation for how you can do an excellent pitch deck (hell, I wrote a e-book about it), however the factor that’s all the time been lacking is an effective library of precise, actual pitch decks that had been profitable in elevating cash. After I rejoined TechCrunch and began speaking to founders about fundraising rounds, I spotted this is perhaps my likelihood. On this week’s teardown, we discuss what labored in regards to the deck and the place the corporate may have made additional enhancements. That is information that isn’t out there wherever else, and it’s been such a enjoyable undertaking up to now!”

Deal of the week

It actually appears like layoff bulletins are the brand new funding spherical tales, however I do assume it’s useful to steadiness the doom and gloom with some growth-focused information. And no, I’m not simply speaking about new crypto funds. This week, Planet FWD introduced that it has secured $10 million so the patron merchandise trade can observe carbon emissions. No biggie.

Right here’s why it’s vital through reporter Christine Corridor:Time is of the essence in decreasing emissions, with [CEO Julia Collins] noting that there are lower than 100 months left to succeed in the 2030 international purpose of slicing no less than 40% of greenhouse fuel emissions from 1990 ranges. Family consumption of issues like meals, which impacts land, vitality and water, account for 60% of world emissions, she added.”

Cloud computing in photography studio

Picture Credit: Peter Dazeley (opens in a brand new window) / Getty Pictures

Throughout the week

Seen on TechCrunch

Report: Substack, the extremely hyped e-newsletter platform, has ditched plans for a Sequence C

4 buyers talk about the US hashish market’s prospects in Q3 2022

Manish Maheshwari, former Twitter India head, leaves new startup

Founder alleges that YC-backed fintech startup is ‘copy-and-pasting’ its enterprise

All the things you wished to find out about Elon Musk and Twitter (however didn’t wish to ask)

Seen on TechCrunch+

Questions come up on Y Combinator’s function in startup correction

Sequoia’s Jess Lee explains how VCs take into consideration their offers

Maybe quicker supply instances had been a poor alternative from a unit-economics perspective

Expensive Sophie: Does Worldwide Entrepreneur Parole have any benefits over an O-1 visa?

Can recurring income financing drive progress in a turbulent market?

Till subsequent time,

N



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