Economy downturn finally spread to the VC industry, while Sequotia Capital called an urgent meeting to all its portfolio CEO last week. Definitely it holds a somber view on the economy.
I was talking to my business partner on if it is good time to start a business now. He is conservative, while I am optimistic. On one hand, it's hard to raise money, but on the other hand, there is less competition. Start-up takes time to develop and the downturn is a good time to prepare it well. When economy begins to fly, your business will start to fly too. Maybe this is too ideal, but isn't that entrepreneurs have to be passionate and persistent to succeed?
Excerpt: (if you need the slides from Sequoia, let me know)
Today, Sequoia Capital hosted a mandatory CEO All-Hands Meeting on Sand Hill Road. There were about 100 CEO’s in attendance and let me tell you, the mood was somber. I’m not one to perpetuate doom and gloom or bad news, but let me underscore this for you: We are in a serious economic downturn and this is just the beginning. Immediate, decisive and swift action is required, along with frugal, day-to-day management of expenses and our business is required.
***Here are my notes from the meeting. Keep this note in your in-box and read it every day. I’m serious folks, this is for our survival.***
· Mike Moritz, General Partner, Sequoia Capital (he moderated the speakers).
· Eric Upin, Partner, Sequoia Capital (Eric ran the $26-Billion Stanford Endowment Fund and knows a few things about Economics and investing.)
· Michael Partner, Sequoia Capital (Michael was recruited to start Sequoia’s very first hedge fund, coming from Maverick Capital and Robertson Stephens. I know him from my BEA days.)
· Doug Leone, , General Partner, Sequoia Capital