Silicon Valley's most successful VC Sequoia Capital called an emergency meeting for its portfolio companies and is bringing back messages it sent to entrepreneurs in 2000. Sequoia partners presented a long analysis of how the United States economy got to this point. It is not a "normal crisis," they warned, and it will take a long time to emerge from it. They reminded entrepreneurs that tech spending depends on the economy and that e-commerce and advertising are already deteriorating.
They made sure that entrepreneurs understand the new realities they face, like smaller fund-raising rounds, customers that are slow to sign on to new services, fewer acquisitions for smaller sums and a very long road to an initial public offering of stock. They repeated their advice to start-ups: cut costs, get profitable and "spend every dollar as if it were your last." They said it would be the survival of the quickest â€” as in, the quickest to slash expenses.