Roelof Botha shares what the note of the Black Swan of Sequoia is wrong – TechCrunch


In March, famous investment company Sequoia Capital published u Memo Cignu Neru, warning founders about the potential commercial consequences of the coronavirus, which had not yet been labeled pandemic.

“It will take a long time – maybe several quarters – before we can be sure that the virus has been contained. It will take even longer for the global economy to get its feet back,” the note reads.

Six months later, Sequoia Roelof Botha is “surprised” by the state of venture capital and startups in the country, which benefit greatly from – without struggling with – COVID-19 tailwinds.

VCs pour money into a quick clip in edtech, SaaS, low-code is without code, and also telemedicine. In some cases, investors say the company’s financing has been stagnant hotter than ever ahead of the US elections, beating not only March 2020, but The 2019 registers in general.

Sequoia, it seems, is happy to be wrong. This week, Sequoia Capital supported three of the 12 companies that will go public: Sumo Logic, Unity and Snowflake. Snowflake is projected to raise an estimated $ 30 billion, which some say will be the largest software company in the United States to ever go public. Beyond the business, numerous unicorns prepare, or mocked, to be made public in the coming weeks.

“I’m proud of the fact that we’ve seen so many things and we’re anticipating some things,” he said during TechCrunch Disrupt. “But we also missed a lot of things.”

Botha pointed out a few factors that saved the country from leaving from the cold. First, he said the U.S. government’s stimulus package has helped ensure there is no “complete economic collapse.”

“I didn’t really expect this scale reaction,” Botha said. It refers to CARES law of 2 trillion dollars passed by Congress and signed by President Trump, which included PPP loans designed to provide a direct incentive for small businesses to keep their workers on the payroll. Technical recipients including Mobility Bolt, Getaround, Luminar, Stackin, TuSimple and Velodyne.

Botha discussed how technology companies have helped support businesses and operations amid the pandemic, which has gone as far as the growth and revenues of new customers.

Zoom, a Sequoia portfolio company, could be one of the best examples of how it was a technology company ready to shoot during the pandemic. According to Botha, the company, which still holds shares in the company, wants it to maintain more of its position more. Sequoia invested in Zoom when it was valued at $ 1 billion. Today, it is worth more than $ 100 billion, ranging from a business video conferencing service to a home consumer product.

To be fair, some of Sequoia’s warning signs were true: Silicon Valley flooded licenses; Persian companies citing a drop in revenues; and the market remains volatile.

“We also have to realize that there is a lot of pain and there are a lot of local businesses and services and restaurants and cafes that often suffer economically,” he said. “I don’t want to be too bloodthirsty just because technological actions have had a good run. As a country, we need to be prepared to help everyone.”

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