Sequoia Capital sent this to their CEO's. It's a good presentation and hope all of the CEOs of my companies will take a look at it too.

I think it's important not to panic and remember that some of the best companies are made during tough time. Most of the best companies that I invested in were founded during the bottom of the last downturn. I think from an investor perspective, it's periods like there where we get to see how entrepreneurs handle tough decisions. It's also a good chance to see how investors behaving during tough times as well.

I've built some of my best personal relationships during tough times.

Clearly, things are going to be challenging and quite painful for many, but I think that this is a great chance to "get back in shape."

Just remember... don't panic.

6 Comments

I will not panic! :P

Hi Joi,

don't you think that the panic observed nowadays is more psychological than related to facts or reality?
it sounds that economy is giving us a lesson : we have to deal with existing money that we can have or we can really have.
maybe a crisis can clean up the market from bad managed companies and create a new opportunity to regulate the crazy market. my only hope is this crisis won't touch ordinary innocent people .
it is amazing to see how government want to help a bank sector "which played with fire" and did many mistakes when these same government are reluctant to invest in education or in health !! we need regulation and we need that gov take care firstly of their citizens not of companies which made profits and not share it but they want help and money when they are in bankrupt. that is the real corporate responsibility (not just a motto and promotional discourse)

Regards

Slide 49's a tough one. For how many is it already too late?

Rafik: Yes. I think that at this point it's more psychological than anything else... unfortunately, I think it will touch ordinary people who will react and affect the real economy.

I think it's an issue of long term planning. Once we are at this point, we really need the government to "save the economy"... but the education and management of corruption and regulation needs to happen in a sustained way... but it's hard considering the broken political system that we have.

Jonathan: I think the point is that if you sit around thinking about cuts for the next few months, you'll fail even though you may have succeeded if you cut now without hesitation. It's a tough call, but I think Sequoia wants their CEOs to stop hesitating and get ready for a tough storm. The problem is that if everyone does this, it becomes a somewhat self-fulfilling prophecy since one person's expense is another person's revenue.

On the other hand, it's hard to say that it's not good advice.

I still think that thinking clearly and not panicking is the most essential thing.

unfortunately, I think it will touch ordinary people who will react and affect the real economy.

I would hope that it touches ordinary people and that those ordinary people do react and affect the "real" economy. After all, what is a real economy without ordinary people? Or is the "real" economy something reserved for venture capitalists, traders, and investment banks? And if so, I apologize for my ordinary-ness interfering with profits.

Economic crisis is not new, as for years now that all countries are threatened when the money in hand to keep calm and act must

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