THE BASIS POINT

Venture Firm Sequoia To Startups: ‘Get Real or Go Home’

In a presentation this week (see below), marquee venture capital firm Sequoia Capital shared a well-substantiated but grim view of the strength of the consumer and the broader economy going forward. They instructed startups to ‘spend every dollar as if it was their last’ and to ‘get real or go home.’ This is a good presentation for anyone who’s still thinking that Silicon Valley will help us innovate our way out of this credit crisis. Their analysis corroborates most other credible views that we’re looking at about two years of recession, and unless governments can update financial regulations that were mostly created in the 1930s, it could be five times that long.