"Markets Are Closed, Vibes Are Open"
Dear Limited Partners,
What a year. The world shut down, the office closed, and yet the fund found a way to keep doing what it does best: deploying capital recklessly, now over Zoom. We made our fastest investments ever in 2020, because it turns out diligence is even easier when you cannot leave the house to do any.
The markets briefly collapsed and then, inexplicably, did the opposite of collapse. Money was free, rates were zero, and every founder with a webcam and a houseplant raised a round. We funded eleven companies on the strength of their lighting alone.
We learned to value new things: not revenue, not users, but "tailwinds." Everything had a tailwind in 2020. Remote work, at-home fitness, virtual pets — we backed all of it at valuations that assumed the pandemic would last four hundred years.
Markets were closed, but vibes were open, and we traded vibes aggressively.
Remotely,
Chadwick "Chad" Burnsworth III
Managing Partner