Roelof Botha shares what Sequoia’s Black Swan memo got wrong

In March, famed investment firm Sequoia Capital published the Black Swan Memo, warning founders about the potential business consequences of the coronavirus, which had not yet been labeled a pandemic. “It will take considerable time — perhaps several quarters — before we can be confident that the virus has been contained. It will take even…

Roelof Botha shares what Sequoia’s Black Swan memo got wrong

In March, famed investment firm Sequoia Capital published the Black Swan Memo, warning founders about the potential business consequences of the coronavirus, which had not yet been labeled a pandemic.
“It will take considerable time — perhaps several quarters — before we can be confident that the virus has been contained. It will take even longer for the global economy to recover its footing,” the memo read.
Six months later, Sequoia’s Roelof Botha is “surprised” at the state of venture capital and startups in the country, which are largely benefitting from — not struggling with — from COVID-19 tailwinds.
VCs are pouring money at a rapid clip into edtech, SaaS, low-code and no code, as well as telemedicine. In some cases, investors say venture funding has been hotter than ever ahead of the U.S. elections, beating not just March 2020, but 2019 records overall.
Sequoia, it seems, is happy to be wrong. This week, Sequoia Capital will have backed three of the 12 companies going public: Sumo Logic, Unity, and Snowflake. Snowflake is expected to go out at $30 billion val
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