--- title: "REDDS Venture Investment Partners" url: https://reddsvip.com/ description: "Great Partners Create Great Returns. Notes on venture investing from REDDS Venture Investment Partners: partnership, term sheets, portfolio practice and market context." --- # REDDS Venture Investment Partners ## From the journal [01**5 Quantum Stocks Offering Quantum Computing as a Service**Sep 05, 2026](https://reddsvip.com/5-quantum-stocks-offering-quantum-computing-as-a-service/) [02**5 Quantum Stocks Building Quantum Networks and the Quantum Internet**Sep 02, 2026](https://reddsvip.com/5-quantum-stocks-building-quantum-networks-and-the-quantum-internet/) [03**7 Telecommunication Stocks Benefiting from AI-Driven Network Traffic**Aug 26, 2026](https://reddsvip.com/7-telecommunication-stocks-benefiting-from-ai-driven-network-traffic/) [04**7 Telecommunication Stocks Supporting Connected and Autonomous Vehicles**Aug 22, 2026](https://reddsvip.com/7-telecommunication-stocks-supporting-connected-and-autonomous-vehicles/) [05**5 Telecommunication Stocks with Rising Average Revenue per User**Aug 20, 2026](https://reddsvip.com/5-telecommunication-stocks-with-rising-average-revenue-per-user/) [06**Small-Cap Quantum Stocks: 7 Emerging Companies Investors Should Know**Jul 02, 2026](https://reddsvip.com/small-cap-quantum-stocks-7-emerging-companies-investors-should-know/) [07**8 Quantum Computing Stocks to Research Before the Next Commercial Wave**May 10, 2026](https://reddsvip.com/8-quantum-computing-stocks-to-research-before-the-next-commercial-wave/) [08**9 Under-the-Radar Quantum Computing Stocks to Research**Nov 19, 2025](https://reddsvip.com/9-under-the-radar-quantum-computing-stocks-to-research/) [09**9 Quantum Stocks to Watch Over the Next Decade**Oct 27, 2025](https://reddsvip.com/9-quantum-stocks-to-watch-over-the-next-decade/) [10**9 Quantum Stocks That Offer a Different Thesis Than Pure-Play Hardware**Aug 17, 2025](https://reddsvip.com/9-quantum-stocks-that-offer-a-different-thesis-than-pure-play-hardware/) ## October 30, 2017 ### [What a Follow-On Reserve Is For](https://reddsvip.com/2017/10/30/what-a-follow-on-reserve-is-for/) A venture fund rarely spends its whole commitment on the first check. Part of the capital is set aside for the rounds that come later, and that set-aside is the follow-on reserve. The reserve exists because young companies raise in stages. A company that earns its next round will usually offer existing investors the chance to keep their place in it. Without a reserve, that chance expires unused. Reserving too little forces a fund to watch its best holdings be diluted. Reserving too much leaves capital idle in companies that never call for it. The discipline lies in judging, round by round, which companies have earned another check. A reserve is a plan, not a promise. It should be revisited every quarter and released when the reason for holding it has passed. Filed under: [Portfolio Practice](https://reddsvip.com/category/portfolio-practice/) | [Permalink](https://reddsvip.com/2017/10/30/what-a-follow-on-reserve-is-for/) | Comments off ### [Reading a Capitalization Table](https://reddsvip.com/2017/10/30/reading-a-capitalization-table/) A capitalization table is the ledger of who owns a company. Founders, employees and investors each hold their share, and the table records every class of stock and every option beside its holder. The useful reading is the fully diluted view. It counts not only the shares outstanding today but everything that could become a share: options granted, options still in the pool, warrants, and notes waiting to convert. [(more…)](https://reddsvip.com/2017/10/30/reading-a-capitalization-table/) Filed under: [Term Sheets](https://reddsvip.com/category/term-sheets/) | [Permalink](https://reddsvip.com/2017/10/30/reading-a-capitalization-table/) | Comments off ## September 12, 2017 ### [Pro Rata Rights, in Plain Terms](https://reddsvip.com/2017/09/12/pro-rata-rights-in-plain-terms/) A pro rata right is the right to keep your percentage. An investor who owns a tenth of a company may buy a tenth of the next round, and dilution passes by to that extent. [(more…)](https://reddsvip.com/2017/09/12/pro-rata-rights-in-plain-terms/) Filed under: [Term Sheets](https://reddsvip.com/category/term-sheets/) | [Permalink](https://reddsvip.com/2017/09/12/pro-rata-rights-in-plain-terms/) | Comments off ## July 18, 2017 ### [Alignment Before Valuation](https://reddsvip.com/2017/07/18/alignment-before-valuation/) Price is the loudest part of a negotiation and rarely the most important. A financing sets the terms of a relationship that will outlast the memory of its valuation. [(more…)](https://reddsvip.com/2017/07/18/alignment-before-valuation/) Filed under: [Partnership Notes](https://reddsvip.com/category/partnership-notes/) | [Permalink](https://reddsvip.com/2017/07/18/alignment-before-valuation/) | Comments off ## May 9, 2017 ### [The Quiet Work Between Rounds](https://reddsvip.com/2017/05/09/the-quiet-work-between-rounds/) Financings are the visible moments of venture investing. The work that fills the months between them is quieter: introductions to candidates and customers, patient hours on governance, and the slow preparation for the next raise. [(more…)](https://reddsvip.com/2017/05/09/the-quiet-work-between-rounds/) Filed under: [Portfolio Practice](https://reddsvip.com/category/portfolio-practice/) | [Permalink](https://reddsvip.com/2017/05/09/the-quiet-work-between-rounds/) | Comments off ## March 14, 2017 ### [Liquidation Preferences Without the Jargon](https://reddsvip.com/2017/03/14/liquidation-preferences-without-the-jargon/) A liquidation preference decides who is paid first when a company is sold. The common arrangement returns an investor's money before the remaining proceeds are shared. [(more…)](https://reddsvip.com/2017/03/14/liquidation-preferences-without-the-jargon/) Filed under: [Term Sheets](https://reddsvip.com/category/term-sheets/) | [Permalink](https://reddsvip.com/2017/03/14/liquidation-preferences-without-the-jargon/) | Comments off ## January 24, 2017 ### [What a Board Seat Obligates](https://reddsvip.com/2017/01/24/what-a-board-seat-obligates/) A board seat is often described as a right won in a financing. It is better understood as a duty assumed. [(more…)](https://reddsvip.com/2017/01/24/what-a-board-seat-obligates/) Filed under: [Partnership Notes](https://reddsvip.com/category/partnership-notes/) | [Permalink](https://reddsvip.com/2017/01/24/what-a-board-seat-obligates/) | Comments off ## November 8, 2016 ### [Diligence Is Mostly Listening](https://reddsvip.com/2016/11/08/diligence-is-mostly-listening/) Due diligence produces documents, but its substance is conversation. Customers, former colleagues and the founders themselves will say most of what needs to be known, provided someone is listening rather than confirming. [(more…)](https://reddsvip.com/2016/11/08/diligence-is-mostly-listening/) Filed under: [Partnership Notes](https://reddsvip.com/category/partnership-notes/) | [Permalink](https://reddsvip.com/2016/11/08/diligence-is-mostly-listening/) | Comments off ## September 20, 2016 ### [Patient Capital and Market Cycles](https://reddsvip.com/2016/09/20/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. [(more…)](https://reddsvip.com/2016/09/20/patient-capital-and-market-cycles/) Filed under: [Market Context](https://reddsvip.com/category/market-context/) | [Permalink](https://reddsvip.com/2016/09/20/patient-capital-and-market-cycles/) | Comments off ## August 16, 2016 ### [The Difference Between Funding and Partnership](https://reddsvip.com/2016/08/16/the-difference-between-funding-and-partnership/) Capital is the commodity in venture investing. On the day the wire clears, money from one source is identical to money from another. [(more…)](https://reddsvip.com/2016/08/16/the-difference-between-funding-and-partnership/) Filed under: [Partnership Notes](https://reddsvip.com/category/partnership-notes/) | [Permalink](https://reddsvip.com/2016/08/16/the-difference-between-funding-and-partnership/) | Comments off ## July 26, 2016 ### [Great Partners Create Great Returns](https://reddsvip.com/2016/07/26/great-partners-create-great-returns/) The line above this page is a working standard, not a slogan. Returns in venture investing are created inside companies, by the people who build them and the partners who back them, long before any fund reports them. [(more…)](https://reddsvip.com/2016/07/26/great-partners-create-great-returns/) Filed under: [Partnership Notes](https://reddsvip.com/category/partnership-notes/) | [Permalink](https://reddsvip.com/2016/07/26/great-partners-create-great-returns/) | Comments off