3 ms·

Sequoia Is Down Bad

28 points by rchaudhary 4y ago

lacker 4y ago
This article is really focusing on the negatives... Sequoia led the $5.5m Series A investment in Unity in 2009. https://unity.com/our-company/newsroom/sequoia-capital-invests-unity https://unity.com/our-company/newsroom/sequoia-capital-inves... Sequoia made billions on that investment. Yeah, if they had timed the market better and gotten out sooner, they could have made even more billions. C'est la vie.
fourseventy 4y ago
The entire market is way down
sirspacey 4y ago
Before today an article like this might have some credence. We have 20 years of tech history to show that the pain of selling too early cannot be salved. It’s not like these companies also magically lost 80% of their users or potential market growth. Chill. It’s just Wall Street. Institutional investors will be back, like always.
- Apocryphon 4y ago
  Could it be though that 2020-2021 was a high water mark for the market, and it may take years for it to return to those valuations? The increasing interest rates show that we’re in a different era compared to that time.
  - staticautomatic 4y ago
    Sure. Recessions tend to last a couple years.
    - dragonwriter 4y ago
      > Recessions tend to last a couple years. No, they don't. The Great Recession—the longest recession since the Great Depression—lasted 18 months. The COVID recession, the most recent and shortest post-Great Depression recession, lasted 2 months. The median post-Great Depression recession has been 11 months. EDIT: Also, however, note that the upthread comment was more about the length of bear markets, not recessions. Those are somewhat correlated but not equivalent.
      - sirspacey 4y ago
        Appreciate the distinction here. My POV may be outdated because most SaaS founders I know were building companies with few IPO reference points for valuation vs today. Still seems the psychology/argument for rejecting significant multiplies on rev hasn’t changed even though the facts on the ground have. I’m concerned a generation of founders may underplay their hand while VCs benefit from overstating the impact of current market conditions on future valuations.
Apocryphon 4y ago
We are all HODLers now

28 points by rchaudhary 4y ago

This article is really focusing on the negatives... Sequoia led the $5.5m Series A investment in Unity in 2009. https://unity.com/our-company/newsroom/sequoia-capital-invests-unity https://unity.com/our-company/newsroom/sequoia-capital-inves... Sequoia made billions on that investment. Yeah, if they had timed the market better and gotten out sooner, they could have made even more billions. C'est la vie.

fourseventy 4y ago

The entire market is way down

sirspacey 4y ago

Before today an article like this might have some credence. We have 20 years of tech history to show that the pain of selling too early cannot be salved. It’s not like these companies also magically lost 80% of their users or potential market growth. Chill. It’s just Wall Street. Institutional investors will be back, like always.

Apocryphon 4y ago
Could it be though that 2020-2021 was a high water mark for the market, and it may take years for it to return to those valuations? The increasing interest rates show that we’re in a different era compared to that time.
- staticautomatic 4y ago
  Sure. Recessions tend to last a couple years.
  - dragonwriter 4y ago
    > Recessions tend to last a couple years. No, they don't. The Great Recession—the longest recession since the Great Depression—lasted 18 months. The COVID recession, the most recent and shortest post-Great Depression recession, lasted 2 months. The median post-Great Depression recession has been 11 months. EDIT: Also, however, note that the upthread comment was more about the length of bear markets, not recessions. Those are somewhat correlated but not equivalent.
    - sirspacey 4y ago
      Appreciate the distinction here. My POV may be outdated because most SaaS founders I know were building companies with few IPO reference points for valuation vs today. Still seems the psychology/argument for rejecting significant multiplies on rev hasn’t changed even though the facts on the ground have. I’m concerned a generation of founders may underplay their hand while VCs benefit from overstating the impact of current market conditions on future valuations.

Apocryphon 4y ago

We are all HODLers now