For all the dull gloom that the Sequoia presentation seems to have unleashed on the technology startup community, there are others who beg to differ from its ominous forebodings. While certainly nowhere in the same league as Sequoia, Altos Ventures, a mid-tier VC firm based out of the Bay Area challenges the postulates of the now (in)famous presentation with Peter Drucker’s prophetic assertion that “…..Entrepreneurs should love change; they are the beneficiaries of change, not the victims “ To be sure, people who need certainty are unlikely to make good entrepreneurs. But such people are unlikely to do well in a host of other activities as well – in politics, or in command positions in a military service, or as the captain of an ocean liner. In all such pursuits decisions have to be made, and the essence of any decision is uncertainty…”

Equally telling is this quote from the preso “….Foxes are great at raising capital – they thrive in bubble markets. Hedgehogs would rather bootstrap – they do far better during the inevitable crashes.”

Altos is giving an open arm welcome to startups seeking capital. According to them, less capital is required now than ever to build a great company. Check out the presentation below…

What does one make of this seeming contradiction? Well, recessionary trends can impact different segments of the economy in different ways. For a small/mid sized VC firm like Altos, this may actually be a great opportunity, since the downturn makes them more competitive than before for facing competition from top tier firms like Sequoia. Viewed against that reality, the presentation starts to make perfect sense.
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On the lighter side, do spend a few minutes going through this hilarious rejoinder to the Sequoia presentation. Ostensibly from a VC firm called Whiner Jerkins (think Kleiner Perkins), the presentation is funny down to the last slide..