THINK TECH IS A BUBBLE READY TO BURST? Then You'd Better Read Sequoia's Famous Doom Report Again

Death spiral

Photo: Sequoia

With venerable VC firm Sequoia Capital leading a $41 million investment in a pre-launch mobile application — and with everyone screaming we’re in another tech bubble — we’ve decided to take a look back at its “RIP Good Times” report from October 2008.In the report, Sequoia warned the sky was about to fall, and startups should prepare for a very long and hard future.

The presentation sent a scare through the entire world of tech, but the gloom and doom it outlined never fully materialised in tech.

Today, the general economy remains in a malaise, but for the world of startups nothing could be further from “RIP Good Times.”

In fact, it’s closer to “let the good times roll,” as evidenced by colour raising $41 million on the strength of its team and its idea.

Of course, there are a lot of worrywarts who see colour’s funding, as well as the growing valuations for startups, as signs that we’re in a bubble. And those people think the bubble is going to burst.

For those people, we’ve pulled the key slides Sequoia used to scare the bejesus out of its portfolio companies. If you think we’re in another bubble, then you better take a look at Sequoia’s doom report and see if startups are following its advice.

This was the scary opening slide

After talking about the macro environment, Sequoia tackled what startups should think about.

This is true!

It was different, but not so much for the world of tech.

The recovery is taking a long time for most people.

The cash crunch didn't last very long.

M&A was down briefly, but Google's aggressive M&A activity sent a jolt through the Valley.

It feels like this is a legacy of the crisis, startups are trying to get big rounds to protect themselves.

Still relevant advice, right?

Which companies will be in a death spiral this time?

Stay nimble.

Move fast!

Did startups make the right choices?

Make sure you have enough cash to cover you for a year

Worry about the bubble bursting? Here's the solution to protect yourself.

Many startups got real.

Want to revisit the whole presentation?

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