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Sequoia Capital Partners Reiterate Value of Cash

October 9, 2008

Apparently, TheFunded.com managed to procure meeting notes of a CEO of a Sequoia Capital portfolio company, made their mandatory gathering to discuss what their companies should be doing in the current economic climate. TheFunded published the full text in their members only section, but Lance Weatherby, a ‘Venture Catalyst’ at Georgia Tech, republished it on his blog.

The speakers at the meeting seem to echo my sentiments yesterday about CASH being king, and there is A LOT mentioned about cashflow and cutting expenses… cutting DEEP. Whether it mean cutting unnecessary features from your product, cutting employees, cutting salaries; the most drastic the better in order to PRESERVE cash and you cash flow.

(I had a whole list of my favorites here before wordpress decided to eat my post for lunch and I had to start from scratch. Read the full text over at Lance’s blog for all the good stuff.)

This is pretty serious stuff from one of the country’s premier venture capital firms. However, when you really sit and think about what they had to say, really, it’s just sound, LEAN business practices that you should probably be following anyway. Right?

As a startup, you HAVE to know that cashflow is going to be very important to your (ultimate) success and you should ALWAYS keep expenses as trim as you can. Don’t we learn that in Business 101?

I love the last sentence in the text of the meeting notes:

Get Real or Go Home

Good advice for all of us!

Written by Bradley Joyce · Filed Under Blog, Startups, Venture Capital 

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