Sequoia's Message to Start-ups

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

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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