Sequoia on the downturn

This slideshow from Sequoia not only gives their guidance for entrepreneurs on dealing with the downturn, but also provides some context to help us understand how we got here. Worth reading and understanding.

Couple of key takeaways:

• A V-Shaped recovery is unlikely this time around (Slide 31)
• Mobile is not immune this time around (34)
• Valuations are coming down, as are round sizes. Getting to cash-flow positive is imperative. (44)
• Acquisitions are going to get harder. (45)
• Adapt fast (today!), or die. (49)

I worked for a Sequoia portfolio company that raised its first round in December 2000, and managed to ride out the last downturn to a successful outcome. These guys have a ton of experience, and are among the smartest guys in the Valley. If you’re not reading this and taking this on board, you had better be the smartest guy in the room.