Alliance Partners

Saturday, March 07, 2020

Sequoia advises its Investee Companies


We could be facing a recession ... for most it will be bad... for those with an abundant mindset and a solid vision - it could be really good.  

Many of the most iconic companies were forged and shaped in difficult times - vis-à-vis 
  • Cisco - took advantage of black Monday in 1987.
  • Google and PayPal negotiated their journey after the Dotcom crash 
  • Airbnb , Square and Stripe were founded in the GFC.
Challenges focus the mind - and provide fertile ground for creativity and innovation .
Taleb - who wrote the book “black swan” talks about the effect of the black swan to different people .... 

“what may be a black swan surprise for a turkey is not a black swan surprise to its butcher; hence the objective should be to "avoid being the turkey" by identifying areas of vulnerability in order to "turn the Black Swans white"



  1. Have enough cash! Have enough access to money to ride out the tough period (toilet paper?) - and have enough access to money or “currency” to make the great acquisitions. Remember the core principal that my grandmother taught me - buy low and sell high!!! Seize opportunities when your competitors have been battered! In a downturn - revenue and cash levels fall faster in a recession 
  2. Be prepared to change - be adaptable - as Darwin said - those who survive “are not the strongest or the most intelligent , but the most adaptable to change.
  3. Face facts - False optimism can be destructive - face the facts and take decisive action. Look at your overheads, Capex and budgets and reassess.