Combinator Catastrophe 💥

Combinator Catastrophe

Y Combinator and Sequoia are some of the most well recognized and respected names in the startup and venture capital worlds. In case you’ve never heard of it, Y Combinator is an American technology startup accelerator launched in March 2005. It has been used to launch more than 3,000 companies, including Stripe, Airbnb, Cruise, PagerDuty, DoorDash, Coinbase, Instacart, Dropbox, Twitch, and Reddit. Along similar lines, Sequoia Capital specializes in seed stage, early stage, and growth stage investments in private technology companies. Both of these companies have sent out emails or presentations to their startup founders, with advice and coaching on how to survive the possibilities of the incoming recession.

For startup founders, the main goal is to keep the company afloat, all while dealing with less venturing capital funding. There’s so much to go over that Sequoia sent out a 52 page slide presentation, laying out big picture risks for startup founders while urging them to preserve cash for survival. Indeed, with the level of sustained inflation, geopolitical conflicts, and COVID’s supply chain issues, The Feds are limited in what they can do; the usual “quick-fix policy solution” like slashing interest rates or quantitative easing will be limited in their effectiveness.

What do you think about the state of the economy and would you follow the warnings and advice from YC and Sequoia?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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