This presentation from famous Silicon Valley Venture Capital firm, Sequoia Capital, is a must-see. It explains the effects of the economic downturn on venture capital and internet startups. The news obviously isn’t good, as investors will shun typically risky online startups, unless they are entities that can turn faster, if not immediate, profits.

There‚Äôs quite a bit of information on what went wrong in the economy, why the recovery is going to take some time, and what startups can do to survive. Sequoia reckon that startups without at least a year’s worth of cash in the bank are in trouble. The VC firm that invested in YouTube and Admob, recommends that all startups should look to be cashflow positive as soon as possible and “spend every dollar as if it were your last”.

2 Responses to “Sequoia Capital on startups and the economic downturn”
  1. @Steve B –yip, a typo. thanks for letting me know — now corrected.

  2. Hey there. In the first sentence of this post, you write:

    ————————-
    This presentation from famous Silicon Valley Venture Capital firm, Sequoia Capital, is a must-see.
    ————————-

    In this sentence, the link to Sequoia Capital right now is “www.sequoia.com”.

    But if you try that link, you’ll see that http://www.sequoia.com belongs to Sequoia Benefits, an HR benefits firm.

    For Sequoia Capital (the VC firm), the web site is actually at “www.sequoiacap.com”.

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