In a 52-page slide deck shared with 250 founders, the prominent Silicon Valley venture capital firm predicted a prolonged period of economic uncertainty and change, spurred by turbulent financial markets, inflation and geopolitical instability. It urged founders to cut costs and quickly extend their runway to “avoid the death spiral.” (The Information)

Talking point: Sequoia has earned a reputation for its prescient doomsday takes, including its 2008 presentation entitled “R.I.P Good Times” and its 2020 memo, “Coronavirus: The Black Swan of 2020.” The latest warning predicts there won’t be a V-shaped recovery, as there was following the early days of the pandemic, noting that the monetary and fiscal tools used then “have been exhausted.” Over a dozen Canadian investors who spoke to The Logic earlier this month predicted a slowdown in venture capital funding amid the broader market downturn. Sequoia’s presentation echoes expectations from many of them that this correction will be prolonged.