Margins on Sequoia’s Startup Memo – TechCrunch

Welcome to Startups Weekly, a new human experience on startup news and trends this week. To get this in your inbox, Subscribe here.

Sequoia takes things very seriously. The storied venture firm has been known to react to macroeconomic events with large warrants targeting portfolio companies, and sometimes the entrepreneurship landscape in general. Recently, Sequoia created a set of 52 slides, first reported by The Information, titled Adaptation to Endurance; The document reads as a follow-up cycle to her infamous memo “Coronavirus: The Black Swan of 2020” released in March 2020.

The company isn’t always right in its speculations – which is probably why it stuck to internal musings rather than an intermediate post this time around – but it does serve up in providing a snapshot of how one of the most successful and successful companies is. All the time thinking of a looming downturn.

“Our intention in gathering today is not to be a beacon of gloom,” the deck stated. “But we also believe that winning in the coming years will depend on making difficult and decisive choices in the face of uncomfortable challenges that may have been hidden during the abundance and distortions of free capital over the past two years.”

Sequoia’s advice largely followed the same script other venture firms have been using: extend the runway, focus on sustainable growth, and recognize that economic recovery may be out of reach. However, there were a few anecdotes that stood out, such as a sub-tweet that I suspect is about Tiger Global and a careful explanation of how the founders define fluff these days.

For my full information on this, read my TechCrunch+ column, “Sequoia is the latest venture capital firm that wants you to take deflation seriously.” In the rest of this newsletter, we’ll present the founder’s view of this moment in tech, tearing up the platformer and the deal that may have flown under your radar this week. As always, you can support me by forwarding this newsletter to a friend or Follow me on Twitter or subscribe my blog.

Let’s own from heart to heart

On Equity This week, Heart to Heart CEO Josh Ogundo Join us to talk about it His view of the market for early stage founders. Ogundu told us what he’s rethinking, the importance of honesty and what to do before considering layoffs. A lot of times we have guests on the show, so when we do, you know it’s going to be good.

Here’s why it’s important: Lots of advice, as the introduction to this newsletter shows, It came from investors. However, founders are the ones who live the change and make the tough decisions, so consider this episode Reality check that is overdue.

Image credits: Bryce Durbin / TechCrunch

Tearing the playing field

our area Hajj Jean Camps He started a weekly series in which he reviews the planned presentation of a startup company in the form of a smart column. Recently, browse Lumigo’s Series A platform Which helped the startup get a $29 million round.

Here’s why it matters, in his words: “I’ve coached startups for a long time, and my number one challenge is always that there’s no shortage of advice on how to make a good presentation (hell, I wrote a book about it), but something that has always been missing is a good library of photorealistic presentation kits that have successfully raised the money. When I joined TechCrunch and started talking to the founders about fundraising rounds, I knew this might be my opportunity. tearing up this week, We talk about what worked in the group and where the company could have made further improvements. This is information not available anywhere else, and it has been a fun project so far! “

Deal of the week

The layoffs are certainly the stories of the new funding round, but I think it helps to balance the doom and gloom with some growth-focused news. And no, I’m not just Talking about new crypto funds. Planet FWD announced this week that it has secured $10 million in cash So the consumer products industry can track carbon emissions. No big problem.

Here’s why it’s important via the reporter Kristen Hall:Time is of the essence in reducing emissions, with [CEO Julia Collins] Noting that there are less than 100 months left to reach the global goal of 2030 to reduce at least 40% of greenhouse gas emissions from 1990 levels. She added that household consumption of things like food, which affects land, energy and water , representing 60% of global emissions.

Cloud computing in the photography studio

Image credits: Peter Dasley (Opens in a new window) / Getty Images

all the week

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Founder claims YC-backed fintech startup is ‘copy and paste’ its business

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Viewed on TechCrunch +

Questions arise about Y Combinator’s role in startup patch

Jess Lee of Sequoia explains how VCs think about their deals

Faster delivery times may have been a poor choice from a unit economics perspective

Dear Sophie: Does Parole for International Entrepreneurs Have Any Benefits on an O-1 Visa?

Could recurring revenue financing drive growth in a turbulent market?

until next time,