Venture Capital layoffs
I heard that even VCs like Sequoia and Matrix Venture Partners are laying off people Sequoia has laid off 3 Analysts, 1 VP and 1 associate and Matrix has laid off 5-6 people Any thoughts? Is it true? #layoffs
Cafeinatedpragmatist
Stealth
a year ago
That's interesting. Even I noticed that. But VC generally doesn't have "layoffs". It's more like consulting where it's up or out. At an analyst level. If you are out after 2 years, it's less layoff more that you couldn't make the jump or there was no space up there.
Associate and VP level could just be putting focus on core business (seed and Series A), and reducing the growth team size.
Just guessing
Cafeinatedpragmatist
Stealth
a year ago
Would expect more layoffs on the web 3 side though. Overhired and not enough activity in the space, for a large team tracking the sector.
Makes sense. It’s not really layoffs but actually the up or out acting out
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Cafeinatedpragmatist
Stealth
a year ago
Interesting. Will try to find out more and report here.
On the 2nd point about business cycles, agree to disagree. Theoretically, you'd want folks to have seen bear markets, but it's a results driven business. Experience is always 2nd to outcomes. Unless you are high enough in the value chain. Not like I believe this is right, but it is a more common occurrence.
Both the VCs layoff had an incident behind them responsible for layoffs of 2-3 people.
The incident is too Pvt even for grapevine but ya VCs don’t usually Lay-off.
Matrix is even hiring for analysts again
Cafeinatedpragmatist
Stealth
a year ago
Yeah, these weren't structural issues
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SorryYaar
Stealth
a year ago
I was discussing this with a few friends that VC PE firms will also shrink this year. But was expecting this to happen at Partner level also.
In the last few years vc fund sizes were increasing and deployment cycles were getting shorter. This resulted in people becoming partners in a short time frame and in general the size of the team increasing considerably.
Now with fund deployment cycles increasing again and fund sizes not expected to increase considerably, VCs also need to shrink a bit to come out of "growth"
Maverick030215
Stealth
a year ago
Is that correct? Can anyone confirm?
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