

Sequoia has emergency meeting, tells startups to try to survive downturn - erickhill
http://www.thestandard.com/news/2008/10/08/report-sequoia-has-emergency-meeting-tells-startups-try-survive-downturn

======
dennykmiu
My advise to startup CEO's, whatever you do, don't be an optimist. This is not
the end of the beginning; this is the beginning of the beginning. Things will
get a lot tougher for a lot longer than you can ever imagine, much worse that
the last one in 2000 which I fortunately survived. The timing of the $700B
bailout last week is similar to the $3B inventory writedown by Cisco in Q3 of
2000. Until then, every CEO knew that things were tough but everyone thought
that recovery was in sight. But when John Chambers threw in the towel, it
really marked the beginning of the beginning. If you are the CEO of a startup
that is not yet profitable and survives on VC money, you are screwed. If you
are the CEO of a startup that has just achieved profitability, you might not
be anymore. The best advise that I ignored in 2000 was "your money is your
most valuable asset". Do whatever it takes to cut down on your fixed cost.
Unfortunately, now is the time to reduce your headcount. Stretch your runway.
This one will last at least four years, if not longer. You have no idea how
hard this is going to get. I have been there. I know.

------
aditya
The average Sequoia startup raises a lot of money, so it makes sense for them
to sound all kinds of alarms, if you started out being frugal and efficient
you're already trying to survive. If you're a mega startup with Aerons, yeah
okay.

