Long Term Thinking

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Canrock is a VC fund so it might seem odd that I would post  something that knocks venture capitalists  but here goes.

Most venture capitalists think too short-term.   Great companies are not built overnight.   They are not built in a year and in most cases they’re not even built in a decade. It can take decades to build a great company. (One principle that I ascribe to in my time management teachings is people tend to overestimate what they can accomplish in a day or a week and underestimate what they can accomplish in a year or a decade.  But  I digress)

It would be presumptuous to call the company that I founded (EMJ) a great company but  In my heart I certainly felt that it was.   It took us 25 years to build a $350,000,000  company.  It  took more than two decades.

Everyone likes instant gratification. Venture capitalists, perhaps more than some, because many venture funds have fixed lifespans (Canrock  included).   Their investors expect to get their money out in a very finite time.   I believe this thinking can  cause companies to not achieve the greatness they deserve in some cases.

One thing I like about Canrock  is most of the capital is mine and my partners. To some extent this allows us to think longer term than some other venture funds.

For companies to grow long-term they need:

1 –  To think long-term.

2 – To be profitable and cash flow positive.

3 –  To be able to manage any investors’ patience.

I encourage all venture capitalists and entrepreneurs to consider thinking more long term.

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