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PayPal's Dot-Com Survival
- In 2000, Sequoia's Mike Moritz advised PayPal to focus on runway during the dot-com crash.
- Roelof Botha, PayPal's CFO, initially didn't grasp the severity but heeded the advice, leading to PayPal's survival and eventual success.
COVID-19's Unique Challenge
- The COVID-19 pandemic differs from previous economic downturns due to its global health crisis aspect.
- The lack of widespread testing creates uncertainty about the true scale of the problem, similar to the early days of the dot-com crash.
Decision-Making in Uncertainty
- Use Sequoia's decision matrix to navigate uncertain situations by considering various scenarios and their impact on cash flow.
- Prioritize cash preservation to ensure survival, as it's crucial for long-term success.