In its now-infamous "Black Swan" letter of warning to startup founders and CEOs in March about the coronavirus and its potential impact on the industry, Sequoia got a lot right about the pandemic.
Businesses would cut spending and headcount to offset a drop in sales. Supply chains would be disrupted. The Federal Reserve would slash rates. Software companies would be less exposed than, say, hardware companies.
But the storied VC firm was off on one count: that private financing "could soften significantly." With the benefit of hindsight and data, we now know that 2020 was in many respects a standout year for venture capital in the US.
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