Make sure to check out this presentation. Its from Sequoia Capital and they are advising their portfolio companies on how to tackle the downturn caused by the economic crisis.
Is it doomsday for tech startups? …. the preso does paint a very gloomy picture… check it out below…
“If you are a venture capitalist looking for a new limited partner, don’t stop in here. Don’t try and sell me on a new fund, and good luck trying with everyone else.”
“If you’re a second or third-tier venture firm trying to raise another fund, forget about it.”
“It will start first in private equity funds where there will be a substantial miss on capital calls. Then we’ll see it next in venture capital.”
“If you are start-up that is not cash-flow positive you are in a tough spot right now. If you haven’t figured out your business model yet you are in trouble.”
“It’s going to be hard to get another round. You aren’t going to get a second life this time.”
Check out this email exchange…
What does this mean for Indian startups?
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Thanks for sharing the presentation…
For Indian Start-ups this means a signal to be cautious… Time will on say how badly or adversely the US’s downturn affect India and its businesses.
But I personally feel there is nothing to be panic about, Its just a time where a company can go and revisit its processes and try to improvise on them.
I will this environment will lead to new innovations and new business models being developed.