Minsky cycles are a concept that has seen its star rise since the financial crisis.
The idea, often summarised as “stability breeds instability”, is now incorporated into policy maker playbooks around the world.
This was a brilliant piece bringing the concept to venture.
“The key Minsky idea is that increasing capital inflows reduce perceived risk“.
Venture is going through this, driven by “shortening time” which boosts IRR, and the key question is whether true risk has actually decreased, or, we are in classic cycle.
