Footnotes on Sequoia’s startup memo

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Sequoia takes issues critically. The storied enterprise agency is thought to react to macro-economic occasions with grand memos aimed toward portfolio corporations, and generally the entrepreneurship scene at massive. 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 shouldn’t be at all times proper in its prognostications — which is perhaps why it caught to inside musings as a substitute of a Medium publish this time — however it does do a service in offering a snapshot of how one of the vital weathered, and profitable, corporations of all time thinks a few looming downturn.

“Our intention in gathering at the moment shouldn’t be to be a beacon of gloom,” the deck reads. “However we additionally imagine that successful within the years forward goes to rely upon making arduous, decisive selections confronting uncomfortable challenges which will have been masked in the course of 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: prolong runway, give attention to sustainable progress and acknowledge that an financial restoration could also be a methods away. There have been, nevertheless, some tidbits that stood out, resembling a subtweet I’m guessing is for Tiger World 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 most recent VC agency that wishes you to take the downturn critically.” In the remaining of this article, we’ll usher in a founder’s perspective on this second in tech, a pitch deck teardown and a deal which will have flown below your radar this week. As at all times, you possibly can help me by forwarding this article 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 discuss his perspective in the marketplace 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 usually that now we have company on the present, so once we do, you recognize it’s going to be an excellent one.

Right here’s why it’s vital: A lot of the recommendation, as this article’s intro exhibits, has come from traders. But, founders are those dwelling the change and making the arduous selections, so contemplate 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 critiques a startup’s pitch deck in the form of a witty column. Most just lately, he reviewed Lumigo’s Collection 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 at all times run into is that there’s no scarcity of recommendation for do an excellent pitch deck (hell, I wrote a e-book about it), however the factor that’s at all times been lacking is an excellent library of precise, actual pitch decks that had been profitable in elevating cash. Once I rejoined TechCrunch and commenced speaking to founders about fundraising rounds, I noticed this is likely to be my probability. On this week’s teardown, we discuss what labored concerning the deck and the place the corporate might have made additional enhancements. That is information that isn’t obtainable wherever else, and it’s been such a enjoyable venture to this point!”

Deal of the week

It definitely appears like layoff bulletins are the brand new funding spherical tales, however I do assume it’s useful to stability the doom and gloom with some growth-focused information. And no, I’m not only speaking about recent crypto funds. This week, Planet FWD introduced that it has secured $10 million so the patron merchandise business 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 achieve the 2030 world aim of chopping a minimum of 40% of greenhouse fuel emissions from 1990 ranges. Family consumption of issues like meals, which impacts land, power and water, account for 60% of world emissions, she added.”

Cloud computing in photography studio

Picture Credit: Peter Dazeley (opens in a recent window) / Getty Photos

Throughout the week

Seen on TechCrunch

Report: Substack, the extremely hyped publication platform, has ditched plans for a Collection C

4 traders focus on the US hashish market’s prospects in Q3 2022

Manish Maheshwari, former Twitter India head, leaves recent startup

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

All the things you desired to find out about Elon Musk and Twitter (however didn’t need 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 occasions had been a poor selection from a unit-economics perspective

Pricey 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,


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