"Everything Is Going Up Forever" (framed in office)
Dear Limited Partners,
I am writing to you from the top of the mountain, and the view is eternal. Everything is going up. Our markups are astronomical. Our paper gains are historic. On paper — and I cannot stress the word "paper" enough — we are geniuses.
Every company we touched in 2021 raised its next round at triple the price within weeks, often from us, to ourselves, at prices we set. The flywheel spins so fast it has become a blur of wealth. We have framed this letter and hung it in the office as a permanent monument to the fact that markets only go up.
We have stopped tracking risk, as risk appears to have been cancelled. We have stopped reading term sheets, as every term is favorable when prices rise forever. We have hired a "Head of Going Up" to ensure things continue going up.
There is no top. There is only up. Please enjoy these markups, which are permanent and could not possibly reverse.
Euphorically,
Chadwick "Chad" Burnsworth III
Managing Partner