Thanks for the shout-out in this great article, Zebediah.
As the world steps into the jaws of another recession, it may be helpful to recall the top three lessons I learned, having been a Venture Capital investor through the last two economic crises to engulf the tech sector in 2001 and 2008.
#1: The world doesn’t end, but be prepared to weather the storm
The average duration of the last three recessions (in 1990, 2001, and 2008) was 11 months, with the most recent lasting for a year and a half.
The key for venture startups losing money is to stay alive long enough to make it to the other side. The survivors will be stronger and nimbler and even better able to capitalize when the tide turns.
As the numbers and economic activity around the Coronavirus worsen, one truism is that cash levels and revenues at startups will fall faster than they expect and, relatedly, faster than they are likely to cut expenses.