Sequoia Capital are a bunch of idiots.
That could be true, but they're a bunch of successful idiots at the very least.
Sequoia Capital: Armchair quarterbacks
31–40 of 40 posts
Re: Sequoia Capital: Armchair quarterbacks
#3237signals have been extremely successful in their niche and I think they have a wonderful product. However I think their biggest mistake is to try and extrapolate their experience to what seems like all tech businesses and start-ups, with the diversity we see in funding requirements, growth strategies and segments start-ups appeal to chances are slim that the 37signals model is for everyone. Furthermore considering S…
I agree... that blog post came off a bit arrogant and naive TBH. It doesn't sound like Jason has an ounce of experience outside of 37signal's success.
On the flipside, I've seen wayyy to many inexperienced but well-funded companies burn through cash like it's never ending and with little purpose or direction. So in that regard, I do agree with the general point of his post.
Re: Sequoia Capital: Armchair quarterbacks
#33This is an attack on a strawman. What the Sequoia presentation says is: Economic conditions vary. In bad times you can't take as much risk. Bad times are here. Stop taking risks. Though I don't endorse Sequoia's conclusions (I don't know how bad the economy will get, or how long it will stay that way), the chain of reasoning is just common sense. It doesn't make them hypocrites, or imply that what they had been telli…
Correction, your interpretation is that it says: Economic conditions vary. In bad times you can't take as much risk. Bad times are here. Stop taking risks.
That said, the presentation says what it says; it talks about the what happened, how we got here, how it's gonna be like what (their) companies are supposed to do now.
And what they're supposed to do now, is exactly what any sane company (outside of SV perhaps?) would be doing from the minute they open shop.
Re: Sequoia Capital: Armchair quarterbacks
#34Amazing... the sheer volume of news.YC folks jumping on the defense wagon here. If I wouldn't know any better, I would say that 37Signals personally offended some you.
To do some reflection... I can't help but wonder how many adjustments a company such as 37Signals is going to have to make to their operations compared to the average overfunded "innovator" from Silicon Valley...
I know for damn sure who to put my money on.
Re: Sequoia Capital: Armchair quarterbacks
#35This is an attack on a strawman. What the Sequoia presentation says is: Economic conditions vary. In bad times you can't take as much risk. Bad times are here. Stop taking risks. Though I don't endorse Sequoia's conclusions (I don't know how bad the economy will get, or how long it will stay that way), the chain of reasoning is just common sense. It doesn't make them hypocrites, or imply that what they had been telli…
I understand the logic that the Sequoia presentation endorses. The problem that I have is with their timing. The signs were clear of bad economic times at least a year ago and probably much earlier than that.
That being said, I still think it's a great time to be working on a startup. I knew the economy was going to tank and yet I still started my company earlier this year. Smart investors who still want to be in the game and yet have fiduciary responsibilities should have been providing at least some warning earlier to their portfolio companies long before it all hit the fan in the last few weeks.
Re: Sequoia Capital: Armchair quarterbacks
#36This is an attack on a strawman. What the Sequoia presentation says is: Economic conditions vary. In bad times you can't take as much risk. Bad times are here. Stop taking risks. Though I don't endorse Sequoia's conclusions (I don't know how bad the economy will get, or how long it will stay that way), the chain of reasoning is just common sense. It doesn't make them hypocrites, or imply that what they had been telli…
What is your specific objection (if any) to the Sequoia presentation? I assume you have no issues with the data, but its interpretation. Would love to know what you think!
Re: Sequoia Capital: Armchair quarterbacks
#37Earlier quoted context omitted.
It's not an attack on a straw man. It's an attack on Sequoia's logic and its presumptions -- a valid attack, if you ask me. Except for Sequoia's recommendation for stasis (bad advice in any conditions), all of its suggestions are how you run a startup . If you aren't doing everything that the deck suggests, your startup probably isn't going to do well. As a startup, you should not be taking stupid risks. Smart risks:…
"If you aren't doing everything that the deck suggests, your startup probably isn't going to do well." It depends on the business models. Some companies can be built cheap and they can reach profitability quickly. Not all companies can follow this model. Sequoia doesn't just invest in YC style companies that can be built by 2 people over 3 months. I highly recommend you take a look at http://www.sequoiacap.com/compan…
A quote from the seattlepi.newsource:
"What few people understood was that the reason that they didn't make money was that for the previous five years every time there was a trade-off between making more money or growing faster, we grew faster,"
They were making money.
Re: Sequoia Capital: Armchair quarterbacks
#38Earlier quoted context omitted.
Just curious, can you think of another company besides Amazon where 'get big fast' actually worked? "Get big fast" was actually a rather symbolic phrase for the excesses of bubble spending. It worked for amazon and few others.
facebook, youtube
Technically, Amazon made money but opted to grow faster. Youtube on the other hand didn't make money at all. They were losing money fast. They got lucky Google bought them.
Re: Sequoia Capital: Armchair quarterbacks
#39Earlier quoted context omitted.
Just curious, can you think of another company besides Amazon where 'get big fast' actually worked? "Get big fast" was actually a rather symbolic phrase for the excesses of bubble spending. It worked for amazon and few others.
facebook, youtube
Neither of which have turned much of a profit yet, AFAIK.
Re: Sequoia Capital: Armchair quarterbacks
#40Earlier quoted context omitted.
"If you aren't doing everything that the deck suggests, your startup probably isn't going to do well." It depends on the business models. Some companies can be built cheap and they can reach profitability quickly. Not all companies can follow this model. Sequoia doesn't just invest in YC style companies that can be built by 2 people over 3 months. I highly recommend you take a look at http://www.sequoiacap.com/compan…
A quote from the seattlepi.newsource: "What few people understood was that the reason that they didn't make money was that for the previous five years every time there was a trade-off between making more money or growing faster, we grew faster," They were making money.
I'm sorry, I don't understand what you mean.