Silicon Valley’s top venture firm sent its portfolio companies a grim memo Thursday afternoon titled “Coronavirus: The Black Swan of 2020,” advising them to “question every assumption” of their businesses. The firm suggested conserving cash, raising more, challenging internal forecasts and considering layoffs, among other things. “This might be a time to evaluate critically whether you can do more with less and raise productivity,” it said. (The Logic)

Talking point: Sequoia is the latest financial giant to urge doomsday preparations in response to the virus, harking back to a notice it issued just before the 2008 financial crisis, known as “R.I.P Good Times.” One interesting parallel that has emerged between that event and now is the success of 6 South Capital Advisors, a black swan fund that just had its best month since making big returns 12 years ago. Meanwhile, stocks continue to tumble on Wall Street as investment banks like Goldman Sachs warn clients of a potential recession. BlackRock, too, has lowered its outlook for the year and is reducing its cyclical exposures in emerging markets and Japan due to the “material” impact of the virus. In its memo, Sequoia reminded readers that it’s weathered “every business downturn for nearly fifty years.” Adaptability, it said, quoting Darwin, is more important than strength or intelligence.