Sequoia's Message to Start-ups

It's been all over the blogosphere this morning (GigaOm, Om again, Bear, Alley): Sequoia Capital is worried. They have given advice to all their portfolio companies. Here's some of it:

The Good Times are Over!
Cut spending. Cut fat. Preserve capital.
Focus on quality.
Reduce risk.
Make sure you have one year's worth of cash.
If you have a product, reduce expenses around it and boost sales. If the product is ready, cut the number of engineers.
Be brutal when it comes to marketing -- anything that isn't working, cut it.
Don't burn through your cash, for cash is king.
Cut base salaries on sales people and leverage them with upside.
Most importantly, be true to yourself.

It means that you have to be lean and focused to get through the next 2 years. Get started now!<

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October 10, 2008 8:39 AM |