Posted on 03/06/2020 9:57:05 AM PST by blam
Sequoia Capital, a top Silicon Valley venture capital firm, issued a "black swan" warning on Thursday about the Covid-19 outbreak.
In a memo to Sequoia founders, employees, and CEOs of its portfolio companies, it provided "guidance on how to ensure the health of their business while dealing with potential business consequences of the spreading effects of the coronavirus."
Time - Sequoia - Warning - RIP - Good
The last time Sequoia sent out a warning like this, it was titled "RIP. Good Times," and sent to its portfolio companies with some tips for surviving the 2008 financial crisis.
Sequoia calls Covid-19 "the black swan of 2020." It predicts a severe economic shock will strike the global economy, advising firms in its portfolio to prepare for the worst; "We suggest you question every assumption about your business."
Having - Business - Downturn - Years - Lesson
"Having weathered every business downturn for nearly fifty years, we've learned an important lesson — nobody ever regrets making fast and decisive adjustments to changing circumstances," the memo said. "In some ways, business mirrors biology. As Darwin surmised, those who survive 'are not the strongest or the most intelligent, but the most adaptable to change.'"
Sequoia's portfolio of companies extends across the world. It said, "we are gaining first-hand knowledge of coronavirus' effects on global business." Here are some of the challenges the venture capital firm has already seen as a result of the virus outbreak:
Drop - Business - Activity - Companies - Growth
Drop in business activity. Some companies have seen their growth rates drop sharply between December and February. Several companies that were on track are now at risk of missing their Q1–2020 plans as the effects of the virus ripple wider.
Supply chain disruptions. The unprecedented lockdown in China
(snip)
(Excerpt) Read more at longroom.com ...
They are slow, aren’t they?
Thanks to yoe for the above.
I don’t know about all that, but deer ticks will make your life a living hell.
I hope gas gets as low as they say it is. I have an unfinished project boat with a big gas tank.
Do not know exactly what kind of tick that has given me this Lyme Disease but it is hell.
On month 4 of a 9 month treatment. Kicking my butt
Good point . I totally agree. And the U.S. news media are hyping this one even more to slow the economy for the election.
You didn’t get it from a mosquito bite. You got lyme disease from a black legged deer tick which bit you and gave you the disease. Fortunately, it is susceptible to potent antibiotics given over a long period of time.
Great image yoe, may it become viral, a meme!
The U.S. news media and even some here are reporting data from communist China government agencies as truth.
This article here shows that the corona virus death rate reported from communist China government agencies is not reliable:
Oh there is a Black Swan event coming for sure.
In 2020? Maybe....
Not Coronavirus!
They will also kill your dog.
I paid $1.89/gal yesterday. Never thought I would ever see <$2 gas again.
$3.19 Oregon Coast, $3.50 Portland. The non-ethanol (premium) I want for my boat is $4.something.
We deserve those higher prices because we are stupid and vote democrat.
You had me at Ebola.
I’m with you on the gas prices. I own an ‘09 Challenger. She’s mean, She’s fast, She’s a thirsty girl who only likes the best.
Yeah, I thought black swan warnings were supposed to come before the black swan arrived. Maybe they’re warning about a bigger, badder black swan. But maybe they think a safe bet is to follow the trend line, wherever it leads. In this case, down. I imagine that they get paid a lot for insights like that.
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