---
title: "Patient Capital and Market Cycles"
url: https://reddsvip.com/2016/09/20/patient-capital-and-market-cycles/
description: "Venture markets run in exaggerated cycles. A cycle changes the price of entry, not the nature of the work."
published: 2016-09-20
updated: 2016-09-20
---

# Patient Capital and Market Cycles

Published 2016-09-20

Filed under: [Market Context](https://reddsvip.com/category/market-context/) | Comments off

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.