No Cliffs, Just Big Peaks and Valleys

I have been thinking a lot about the crazy stock market swings. Will it impact our portfolio companies?  Certainly, but not exactly sure how.  Is there such thing as timing luck?  Certainly, we sold a company to a Chinese buyer on July 1st.  That would not have happened much after that!  Will startups have a tougher time raising capital?  Certainly, investors get nervous with any volatility.

But I do feel strongly that companies with sound business models going after large addressable markets with low barriers to scaling up quickly will always find investors.  You might read that prior sentence and say “duh, no kidding”.  That is fine.  Just don’t panic as you are reading it.

I just read a great post on this week’s stock market downturn (which now seems like an upturn!).  Eric Paley is one of the head guys at Founder Collective (a fellow Cornellian, Micah Rosenbloom, is also one of the head guys at FC; Micah and Eric started a very successful hardware company together in business school……and sold it very successfully too!).  Anyway, I encourage you to read Eric’s post here for a good perspective on the funding cycle peaks and valleys.

Have a great weekend.

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