watever u say ur right......

this is well done and interesting. but how is this from the great depression? so...... yer come on!!!!!

This slide show is 100 percent wrong.

Ironically these guys are very successful and
have forgotton their own history.

Who would ever thought you would find one idiot
to invest in technology after the dot com crash.
But you did .

Schemes and bubbles in economys are only replaced
by new schemes and bubbles and this one will be the same.

Give it a year and I promise you
the alternative energy stock boom , bubble
and then crash.

Larry C.

GeekGirl911,
rational and irrational fear grips the financial markets, so unless this changes (i.e. governments think and behave), a depression is a serious possibility.

Great presentation, thank you for sharing. Keep coming, if u have more :)

This is a very creative, well structured and superbly delivered presentation... let it be a lesson to us all...

David G Smith

iBanter
http://ibanter.co.uk

iBanter Photo Pimp
http://photopimp.ibanter.co.uk

iBanter Comic Creator
http://comics.ibanter.co.uk

This is a brilliant, sobering, and mind-riveting presentation. It explains exactly where we are, and what business needs to do about it.

↓ me too (-.-;;;

I go home ! ;-))

I wouldn't say R.I.P to good times, there's just gonna need to be some adjustments in people's business models.

I think this is dangerous thinking. Blindly cutting and panicking. Of course efficiency is important, but you don't want to sacrifice the future of a creative producing company just because you can not reap a direct and immediate benefit of some of the employees...

Anybody thought about if all company will cut costs (firing employees) then who will be the customers? How this is different from the great depression script???

This is an interesting slide. Is handset subsidy common in the US? In Europe the cost of a handset depents on the rateplan. So this might turn out different.

it wont be the bad time today

Very interesting Show. Thanking for sharing with us. Thilini.

This is one of the best presentations I've seen about the current situation. Sounds like most of you are either uneducated or want to put your head in the sand about the environment. Come back and revisit in a year and see if you're singing a different tune. Better yet go balls to the wall and spend your ass off hoping for a v-shaped recovery. Do it, do it, pussy! Didn't think so......

This slideshow makes my head hurts.. can we have it in English please instead of graphs???

Tsk tsk. The new kids on the block face their first downturn.

For startups, REVENUES are their financing, VC's are the bridge to get to cash positive.
The funding candy is gone for at least half a decade as there is no interest in any form of risk right now, especially the one in ten risk associated with venture capital.

The foreseeable future of startups is bootstraped, friends-and-family self-financed through revenue growth, with follow-on revenue growth assisted through investment not this idiotic game of magic exit strategies hopefully lurking behind M&A door #3. Cash positive is what it will take to get you Series A, not the other way around.

Garages, evenings and weekends, zero salaries, sweat 'n bet the farm. Once again.

Sequoia Capital should change their name to Pussy Capital

Do I have to?

So, is this the end of social media, or the beginning?

On the other hand, for people like 'us,' the recession started in 2000-2001. By 'us' I mean people who have not worked in: defense, real estate, healthcare, banking. So, in a sense, this moment of general(ized) reckoning required the fall of so much to happen. Now, I only wish the military Keynesianism had been applied towards national infrastructures instead of sand castles in Iraq...

As well, please note on slide 4 the name of the author: Eric Upin. Is this a subtle hint to epic ruin?

While the situation does merit being a bit extra cautious until things stabilize, this ppt is like any other news channel over dramatizing the way VCs should react. Fair enough that financial economies are in a soup but holding back to this degree wont help growing out of the situation either. I guess every VC has a mind of their own to pick up only as much as needed from this analysis and not press the panic button.

One has to remember that whereas the Crash was '29, the First Depression was '32 and not too bad. The Second Depression was '36 and only WW ll got us out of it.

So forget this crash, it's the depression that will get us, zero on the axis or not.



Brilliant presentation!

what an idiotic presentation. For a startup, all of this 'expense' focus,

should be standard operating procedure, not a 'recession' adjust.

cut staff ? yeah, for a startup with a project plan to meet a deadline,

that's a brilliant idea. most early stage startups will be looking to deliver/thrive a year

from now. cut their wings before they jump from the nest.

If the VCs have no balls, they shouldn't be VCs.

maybe p(u)Cs ?

'no zero on the axis'... nice to see you took high school statistics. except even without a zero axis, charts still convey the difference between the rate in one period and the rate in another.

'no zero on the axis' that says it all. Without a zero axis, these charts aren't information, they're disinformation. The effect is to fly under the radar of the rational mind and get to the emotional mind. I hate charts with no zero axis. I look, and turn away.

LOL

Slide 46 captures it all: Survival Mode. However, a sensible management team would have seen this coming and built up cash to pick up share in preparation for the recovery.

For startups, the VC's are their financing, so the VC's must seize the opportunity to fund strategic moves in good companies. Sad to see them offer the herd-minded 'batten down the hatches' advice.

I think this is the most misleading slide in the set. There is no zero on the y-axis, and so the change from 64% to 69% from 1996 to 2004 (which is a 7.8% increase) is visually portrayed as being 400-500%. Disgusting. This is the kind of presentation which blames the current crisis on Freddie Mac / Fannie Mae and Clinton-era policies.

Looks like what's called the bull market on that graph is the bear and what's called the bear market is the bull are . (on October 11, 2008, anyway.)

Even yesterday Loic Lemeur has fired more than 1/3 of his staff at Seesmic...what's a hell is happening on the Silicon Valley?

A good company with a compelling and solid business model will always be able to get funding at a decent valuation. The Internet economy will suffer less in the advertising slowdown since the results are more measurable and advertisers will emphasize measurable spending.

That presentation was made by someone at Bain & Company... I recognize that template anywhere.

Is it joke ?

What is new here ? Outsourcing.. cutting ops budgets, being quick.. quick to what, if the customer base is ruined ?

FYI

that's the best slide intro ever ! and the meat ... the best i ever tasted ,sweet delicius tender powerfull ... real quality and semplicity mixed toghether !

that's the best slide intro ever ! and the meat ... the best i ever tasted ,sweet delicius tender powerfull ... real quality and semplicity mixed toghether !

I noticed the absence of series A rounds and interpret that to also mean lack of series A firms. In other words, Angel networks who have focused on series A startups are toast. A firms won't be able to get B or C rounds to clear the backlogged portfolio.

Talking about cutting cost and restructuring the marketing/advertising business practice.

My company has a SaaS solution to leverage the social engagement of your team (the work of most of your people in blogs, Linked...) for getting customers insights, finding influencers, building online focus group and advertising with laser sharp relevance in blogs (including affordable long tails one).

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love that slide. really informative... not.

Thanks Eldon..and Sequoia.

Company B (in slide 49) represents not only a company that can cut expenses, but also one that is adaptable to a new economic climate.

As an example, http://ki-work.com is pioneering 'collaborative capitalism' - a way of transacting work online at a minimal cost with maximum benefit to stakeholders.

It'll be very interesting to see whether companies will just need to tighten their belts to weather the storm, or whether a more radical restructuring of business practice will be needed.

(Disclaimer - I work at ki work)