Bengaluru: Silicon Valley marquee venture capital firm Sequoia Capital has sent out an advisory to the founders of its global portfolio companies on the ripple effects of the Covid-19 virus on their businesses, warning them of a global economic slowdown that may take several quarters to recover.The fund, which sent a similar note to founders called “RIP Good Times” during the 2008 financial crisis, has termed the virus outbreak as the Black Swan event of 2020.
Sequoia is an early backer of companies such as WhatsApp and Google , as well as firms such as Oyo, Byju’s, Bounce, Zomato, Rebel Foods and RazorPay in India.
“Unfortunately, because of Sequoia’s presence in many regions around the world, we are gaining firsthand knowledge of coronavirus… It will take considerable time — perhaps several quarters — before we can be confident that the virus has been contained.
It will take even longer for the global economy to recover its footing,” the fund said in a blog post published on March 6.
Founders and investors in India told ET that the fear factor has become significantly higher in the last two weeks. | To read full story, visit https://startuparound.com/read/1583569805.9274504/Recovery-from-COVID-19-outbreak-to-take-several-quarters,-says-Sequoia?ref=audio_experience