Sequoia made billions on that investment. Yeah, if they had timed the market better and gotten out sooner, they could have made even more billions. C'est la vie.
No, they don't. The Great Recession—the longest recession since the Great Depression—lasted 18 months. The COVID recession, the most recent and shortest post-Great Depression recession, lasted 2 months. The median post-Great Depression recession has been 11 months.
EDIT: Also, however, note that the upthread comment was more about the length of bear markets, not recessions. Those are somewhat correlated but not equivalent.
Appreciate the distinction here. My POV may be outdated because most SaaS founders I know were building companies with few IPO reference points for valuation vs today. Still seems the psychology/argument for rejecting significant multiplies on rev hasn’t changed even though the facts on the ground have.
I’m concerned a generation of founders may underplay their hand while VCs benefit from overstating the impact of current market conditions on future valuations.
https://unity.com/our-company/newsroom/sequoia-capital-inves...
Sequoia made billions on that investment. Yeah, if they had timed the market better and gotten out sooner, they could have made even more billions. C'est la vie.