REDDS Venture Investment Partners

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September 20, 2016

Patient Capital and Market Cycles

Markets run in cycles, and venture markets run in exaggerated ones. Prices for young companies swing further than the underlying progress of the companies themselves.

A cycle changes the price of entry, not the nature of the work. Companies still take the better part of a decade to build, whatever the year on the term sheet.

The practical discipline is to keep pace steady: invest through the quiet years, resist the crowded ones, and let the holding period do the compounding.