Late in 2008, after the rest of the economy crashed and burned due to the housing crisis, the tech sector seemed to be fairly resiliant. Maybe it’s the nature of the industry… less money at stake, generally, in tech VC deals than other industries. For instance, Biotech. That all went out the window when Valley-based VC behemoth, Sequoia Capital, gathered a now-infamous meeting of all its portfolio companies and gave them what can only be described as a “the sky is falling” lecture.
The Valley, which has so far been most unaffected by the downturn in the economy, may be reaching the end of it’s golden thread. Sequoia Capital, one of the largest Venture Capital firms in the Valley, had a meeting with their portfolio companies advising them to “tighten their belts” according to Om Malik of GigaOm. […]