Sequoia Captial presentation

I only just got round to reading the full text of this presentation.  It is too good not to post.

For those that don’t know, this is the presentation Sequoia made to their portfolio companies two weeks ago.

Right click on the slide below to get a full screen view of flick through the slides inside the window.

Sequoia Venture Capital Warning to CEOs – Get more Business Plans

  • Slide 43: “If you’re a startup that is not cash-flow positive you are in a tough spot right now. If you haven’t figured out your biz model yet you are in trouble.”

    Healthy companies and economies works exactly like that but for internet companies this situation (being cash positive / having a credible and defined biz model) is fairly rare. What does it mean exactly? The internet is not a *serious* business ad the haters would say or that the internet economy is the biggest paradigm shift since modern industry?

    Lastly, I see a great opportunity for all the meaningful project coming out in these past/future months… if they’ll have the ability to bootstrap/raise little money and build great apps, chances are that when the market will be bullish again they will be first in line to a good exit.

  • Slide 43: “If you’re a startup that is not cash-flow positive you are in a tough spot right now. If you haven’t figured out your biz model yet you are in trouble.”

    Healthy companies and economies works exactly like that but for internet companies this situation (being cash positive / having a credible and defined biz model) is fairly rare. What does it mean exactly? The internet is not a *serious* business ad the haters would say or that the internet economy is the biggest paradigm shift since modern industry?

    Lastly, I see a great opportunity for all the meaningful project coming out in these past/future months… if they’ll have the ability to bootstrap/raise little money and build great apps, chances are that when the market will be bullish again they will be first in line to a good exit.

  • nic

    Hi Fabio – to generalise I would I think the trick for pre-revenue consumer internet plays will be to keep the burn low over the next little while whilst perfecting the product.

  • nic

    Hi Fabio – to generalise I would I think the trick for pre-revenue consumer internet plays will be to keep the burn low over the next little while whilst perfecting the product.