Footnotes to Sequoia’s startup memo – TechCrunch

Welcome to Startups Weekly, a new, people-focused take on this week’s startup news and trends. To receive this message in your inbox, Subscribe here.

Sequoia takes things seriously. The storied venture capital firm has been known to make major memos to portfolio companies in response to macroeconomic events, and sometimes entire startup scenarios. Most recently, Sequoia created a 52-slide slide, first reported by The Information, called Adapting to Endure; the document reads like a reference to March 2020’s infamously anachronistic “Coronavirus: 2020” A follow-up course to the “Black Swan” memo.

The company’s predictions aren’t always right — which may be why it’s sticking to internal thinking this time around rather than a middling post — but it does offer a service that offers an insight into the most weathered company , a snapshot of how the most successful companies are. There is a looming recession in mind all the time.

“Our purpose in gathering today is not to be a shady beacon,” the deck read. “But we also believe that victory in the years ahead will depend on making difficult, decisive choices to address troubling challenges that may have been overshadowed by the boom and distortion of free capital over the past two years.”

Sequoia’s proposal largely follows the same script that other VCs have been using: expand the runway, focus on sustainable growth, and recognize that economic recovery may be a long way off. However, there are some tidbits that stand out, like a sub-tweet directed at Tiger Global I guess, and a precise explanation of how founders should define fluff these days.

For a comprehensive look at the subject, read my TechCrunch+ column, “Sequoia is the latest VC firm to want you to take a recession seriously.” In the rest of this newsletter, we’ll cover what founders think about this moment in tech, a teardown of the pitch deck, and the deals that might be under your radar this week.As always, you can do this by forwarding this newsletter to a friend or follow me on twitter or subscribe my blog.

let us be heart to heart

This week on stocks, Heart to Heart CEO Josh Ogundu join us to talk His thoughts on the early stage founder market. Ogundu tells us what he is rethinking, the importance of honesty and what to do before considering layoffs. It’s not very common for us to have guests on the show, so when we do, you know it’s going to be a good show.

Here’s why it matters: So much advice, as the introduction to this newsletter shows, from investors. However, founders are people who live with change and make tough decisions, so consider this episode Overdue reality check.

Image Source: Bryce Durbin/TechCrunch

Pitch Deck Teardown

our own Haji Jan Camps Has started a weekly series in which he reviews a startup’s advocacy platform in the form of a witty column.Recently, he reviewed Lumigo’s A-Series Pitch Platform That helped the startup secure $29 million in funding.

Here’s why it matters, in his words: “I’ve been coaching startups for a long time, and the number one challenge we often face is that there’s no shortage of advice on how to make a good pitch deck (heck, I wrote a book about it), but what has been missing is a good library of actual, authentic pitch decks that have successfully raised funds. When I rejoined TechCrunch and started discussing fundraising with founders, I realized this might be my chance. In this week’s teardown, We discuss how the deck works and where the company can make further improvements. This is information not available anywhere else, and so far it’s been a really fun project! “

this week’s best deals

It does feel like the layoff announcement is the story of a new funding round, but I do think it’s helpful to balance doom and gloom with some growth-focused i’m not just Talk about a new cryptocurrency fund. This week, Planet FWD announced it had secured $10 million So the consumer goods industry can track carbon emissions. no big deal.

Here’s why it’s important to pass reporters Kristen Hall:Time is of the essence in reducing emissions, with [CEO Julia Collins] Noting that the global goal of reducing greenhouse gas emissions by at least 40% from 1990 levels by 2030 is less than 100 months away. Household consumption, such as food, which affects land, energy and water, accounts for 60 percent of global emissions, she added. “

Cloud computing in photography studios

Image Source: Peter Dazzley (opens in new window) / Getty Images

all week

Seen on TechCrunch

Report: Highly-hyped messaging platform Substack has dropped plans for Series C

4 investors discuss the outlook for the U.S. cannabis market in the third quarter of 2022

Former Twitter India head Manish Maheshwari leaves new startup

Founder claims YC-backed fintech startup is ‘copying and pasting’ its business

Everything you wanted to know about Elon Musk and Twitter (but didn’t want to ask)

Seen at TechCrunch+

Questions arise about Y Combinator’s role in startup corrections

Sequoia’s Jess Lee explains VC’s view on deals

From a unit economics standpoint, faster lead times may be a poor choice

Dear Sophie: Is there any advantage to an international entrepreneur parole over an O-1 visa?

Can recurring revenue financing drive growth in a volatile market?

until next time,