2020.03.15
The view from the institutional investor seat & Sequoia/Finix & the post-pandemic world
Apologies on the delay and infrequency. I discovered, once again, that writer’s block is real.
I was a college freshman in September 2008, so I wasn’t living and breathing the markets going haywire. After graduating to the surprise of some, I entered the investing world in November 2012. There have been times since where I wondered when (or if) I would ever experience a crisis, and how I would react to the world changing all around me. Well, it’s March 2020, and here we are.
It’s sobering to see everything move so quickly. With the benefit of hindsight, 2008’s story was written over several years. 2020’s is written over days and weeks. There are a lot of reasons for why I won’t forget this past week, but the largest may be that it was when I finally made the mental switch from peacetime investor to wartime investor. It’s a time to face problems, challenges, uncertainty head-on, and I believe the next twelve months will have more than their fair share.
Some things to read:
Behind Sequoia’s Stumble. This story won’t get enough attention due to everything else happening in the world, but like, how does this happen? Why can’t Sequoia remain an investor, but relinquish any pro-rata and information rights? And yet, I don’t believe this will hurt their fundraising efforts because of their track record. It was a mistake, but those do happen in investing, and their portfolio construction allows for misses. It still would be interesting to learn how their current LPs reacted to this news, though.
A Quick Guide To Startup Fundraising In A Pandemic World. When we do make it to the other side, it will be interesting to see which behavioral changes we’ve made do end up sticking. Working from home will only continue to grow in acceptance, and video conferences will replace travel even more than they already have. But, will in-person meetings still need to take place for large business transactions to close? One potential consequence may be that this slows down the record fundraising levels of the past several years.
Because I don’t take enough pictures from my window seat, here’s Barcelona from 35,000 feet (taken in early February, not now). And lastly, stay safe.
