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Sequoia Capital Warning: Winter comes and the best-adjusted survives. Report sharing (A PowerPoint file of 52 slides)

Time: 2022-06-21 Preview:

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At the time of the global economic crisis in 2008, top venture capital firm Sequoia (Sequoia) convened its portfolio companies, analyzed the bad economic environment and made early warnings to investors, and shared a PPT report RIP Good Times . After 14 years, in May of this year, Sequoia Capital issued the latest warning to its portfolio companies, sharing a 52-page PPT report Adapting to Endure .


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The report went viral on the Internet and attracted much attention, and people were concerned about whether a new economic winter had come. So, what did Sequoia Capital say this time?


Next, let's take a look at what the original PPT actually said.


This Sequoia Capital 52-page PPT is mainly divided into seven parts :

1. Why are we here? Why We're Here

2. What is the current macro environment? The Macro Environment

3. How is the current open market? The Public Markets

4. What does history tell us? What History Tells Us

5. How do we become stronger? How to Emerge Stronger

6. How can we lead better? Leading From the Front

7. What should we do next? What's Next


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The content of the above 7 parts can be simply summarized as: due to the impact of the epidemic, war and other aspects, the current macro environment and the open market are not optimistic. We are in a "severe period" and it is very necessary to stop and think about our own The status quo and seek the next development - the cold winter has come, the fittest survive .



01 Why We're Here

Original report: P2-P4


Mainly describe the reasons for convening the meeting to share the report :

○ The current economic environment is not optimistic, the market, labor, supply chain have become uncertain , and everything is in turmoil.

○ As we are currently in a "severe period", the "V-shaped economic recovery" will no longer exist, the economic recovery process will be relatively slow, and preparations for a long recovery need to be made .



02 The Macro Environment

Original report: P5-P9


Current macro environment :

○ Since 2022, due to policies, the Russian-Ukrainian war and other issues, inflation has accelerated , and people have unprecedented concerns about long-term inflation.

○ The Fed needs to control inflation and tighten liquidity conditions. Its core work is to maximize employment and stabilize prices , but unfortunately these tasks have not been completed well .


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○ Assets are expensive and the market is being reassessed - some tech, biotech and new IPOs have become the worst performing assets of the moment.



03 The Public Markets

Original report: P10-P17


Public Market Performance:

○ Nasdaq is experiencing its third major drop in 20 years .


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○ Among all software, internet and fintech companies , 61% have market capitalizations well below their pre-pandemic prices in 2020 . When uncertainty and panic peaked, about a third of companies were trading below their Covid-19 lows .


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○ The era of pursuing high-speed growth at any cost to obtain returns is over. Investors are more concerned about the certainty of companies in the short term, and the market's attention has shifted to companies with strong profitability .

○ In the medium and long term, sustainable development is still the best development path.



04 What History Tells Us

Original report: P18-P26


Lessons from history :

○ Economic recovery will be a long process.


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○ Survival of the fittest - the best at coping with change and acting accordingly to survive.

   • Reducing expenses , not negative, is an effective way to save cash and run faster.

   • Shift quickly to avoid a death spiral.


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   • Start thinking about the decisions you plan to make, and the decisions you want to make.

   • Rainy days are more suitable for overtaking. Crisis = danger + opportunity ; seize the opportunity and overtake on a curve .


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05 How to Emerge Stronger

Original report: P27-P40


Ways to be more powerful :

○ For individuals, be mentally prepared, have the courage to face reality, face fears , overcome difficulties , and have the awareness of turning crisis into opportunity - both danger and opportunity.


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○ For teams , start thinking about the “why”, re- emphasize the company’s vision , mission, and values, demonstrate leadership , and maintain team coherence —and politely ask some people to leave if necessary.


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○ For companies , it is necessary to pay attention to funds, ensure normal cash flow , build the company's financial freedom, focus on investing in the future and main business, and turn constraints into innovation capabilities .


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06 Leading From the Front

Original report: P41-P48


Ways to lead better :


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Change needs to be made and time-wasting fantasies rejected.

○ Leadership Principles

   • 4个C,Communication,Conviction,Confidence,Calmness

   • 3个B,Be authentic ,Be human ,Balance optimism and realism


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○ Leadership Strategy

   • Streamlined development

   • Value speed, one of the greatest business strategies

   • Double the focus on top talent

   • Seek internal consistency

   • Emphasize values and solve practical problems


○ Leadership Model

   • Push and pull in parallel - push is incentive, pull is encouragement, and encouragement and encouragement lead the development of the team.


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07 What's Next

Original report: P49-P50


What to do next?

The most important purpose of gathering here is to change our mentality and face difficulties .

In general, breakthroughs can be made in the following four aspects .

○ Broaden the track and maintain the ability to innovate

○ Actively predict the future and make relevant plans

○ Maintaining leadership in turbulent times

○ Strive to raise funds in a complex and difficult market environment


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If you need a complete report, you can scan the QR code below and contact [Finelite] customer service to get it!


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Image via Sequoia, Adapting to Endure

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