Patience
“Business opportunities are like buses, there's always another one coming"
Richard Branson
Selective with our investments and focused on the long-term best describes our approach. We focus on building deep relationships where we add value, not just capital. We are not looking for quick exits and invest with a minimum 10-year horizon.
Management teams that understand that Rome was not built in a day and that managing cash flow is the most critical function in a business are our friends. We focus on growing companies sustainably and assuming that it will never raise venture capital so planning for profitability is paramount.
Integrity
"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently"
Warren Buffett
Entrepreneurs and management are our partners so we do not try to get a leg up on them when negotiating deal terms. We are transparent and honest in how we conduct our business. A good deal is one where no party feels that they were tricked or gave up too much to get a deal done. Under-promise and over-deliver but be honest about failures and the lessons gained.
Innovation
"It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change"
Charles Darwin
Most people misunderstand what "survival of the fittest" means. The world requires you to innovate or die and this applies to business as well. We only invest in companies that have innovation built into their DNA. Be willing to kill your sacred cow before a competitor does, constantly iterate and test, then apply the lessons.
Many strong companies have failed and even the smartest people lose money. The survivors are the ones who know that they must pivot and then try to figure out how to do so.
"I do not think there is any other quality so essential to success of any kind as the quality of perseverance"
John D. Rockefeller
Our experience as entrepreneurs and investors gives us a high tolerance for failure and an appreciation for risk. We take the long-term view and know that it is wiser to bet on the jockey than the horse so the people we invest in are more important than any one idea they are pursuing at that time.
Seasoned entrepreneurs know that failure is inevitable at some stage and it is the lessons that increase your chances of success with each next move. Failure has not stopped us, only reduced the risk going forward.