Signs of the Apocalypse?

A raft of tech-focused venture capital firms—Sequoia and Y Combinator among them—are warning their companies to batten down the hatches and prepare for rough economic weather. From pointed counsel about hoarding cash, cutting R&D, and reducing payroll to tips on surviving a downturn, the mood is dark.

Sequoia sees signs of a lengthy recession ahead: “We do not believe that this is going to be another steep correction followed by an equally swift V-shaped recovery like we saw at the outset of the pandemic.” Ouch! One could argue that tech isn’t the whole economy, but with a nationwide cooling real estate market and climbing interest rates, some sort of slow down seems to be right around the corner. Private, independent schools should strategize cautiously and be sure to hedge bets.