The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified

Elizabeth Yin of Hustle Fund joins Nick on a special Crisis Coverage installment to discuss Investing after 1 Zoom Meeting, 2nd & 3rd Order Effects of the Virus, and Why "Market Pull" is Critical. In this episode, we cover: Tell us a bit about your background and path to venture Why'd you leave 500 and start Hustle Fund? What is the thesis at Hustle Fund? From a macro standpoint, how do you think the pandemic effects the venture landscape? What were some trends you were following, prior to the virus, that have accelerated in this environment? What are some that have regressed? What are some non-obvious sectors or business types that you're bullish on? Due to maybe second and third order effects of the virus, what are some sectors you are bearish on? You've said that you can make a decision after one Zoom conversation in 48 hours. Without much time to conduct diligence on the company and its founders, how are you able to get conviction so quickly? Many of us are trying to figure out how to invest w/o meeting founders in-person... what are some of the key things you're listening that help you make a quick decision w/o having met the founder? NFX's launched a new application process where startups can apply for funding, give up 15% equity and receive a funding decision in 9 days? What are your thoughts? You've stated that long term success for you is in changing the way that early stage VCs invest and think about investing. What's wrong w/ early stage investing and how do you see it changing over the next decade? I appreciate your contrarian belief that the best startups will be founded outside the Bay Area. Why do you think this is the case? Are there specific areas/geos you're focused on? I want to talk about this concept of "market pull"... Can you define "market pull" for the listeners and how you assess whether a startup has it or not? What advice do you have for investors/fund managers as we proceed amidst a very uncertain future? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Adeyemi Ajao Oren Klaff Leo Polovets Each investor discusses sectors, drivers and/or trends that may have significant impact in the future and are potentially positioned for outsized-returns. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Patrick Gallagher of Tuesday Capital joins Nick on a special Crisis Coverage installment to discuss VC Firm Survival, How Seed Investing Scales, & A Glimpse at the Road Ahead. In this episode, we cover: Walk us through your path to venture How did things first come together for Crunchfund w/ you and Michael Arrington? Why did Michael leave and why did you rebrand Crunchfund to Tuesday? Gives us the highlights of your thesis? How do current events effect your approach going forward? Anything you'll avoid/be much more cautious investing in?... or anything you're leaning into? Some have said that many seed venture firms will not survive the current crisis. I think there may be more than 1000 seed firms currently... Do you think the volume of seed players reconciles as a result of this correction? What is your reserve strategy? How much and how do you make decision as to how you deploy reserves into current portcos? Why the partnership with Frog and what does that mean for your portcos? Aside from design, branding, storytelling... what is an area that is significantly under-utilized as an area of value that VCs can provide to starutps? I believe you're in Airbnb and Uber... was it difficult to invest in their later rounds while you had a young seed-focused fund? Do you believe seed funds can scale? Why do you think there are so many people that want to do this job? The numbers aren't good... it takes a long time to establish yourself, most funds fail and even the successful ones take a long time to make money. Before we wrap things up, what would you say to a young individual that wants to make a career in venture capital? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Darren Bechtel of Brick & Mortar Ventures joins Nick on a special Crisis Coverage installment to discuss The Built World in Crisis. In this episode, we cover: Background and path to venture? South Park... must be a story behind the name there? Overview of the thesis at Brick & Mortar? Just have to say... I suspect that the impacts of this crisis on the built world will be more profound that we can possibly imagine... and I won't pretend to know what those might be. Can you talk a bit about what you're seeing and what that could mean for the future? Circling back to your path to venture... How did your family react to your pursuit of a career in VC in lieu of the family business? Walk us through your first angel investment -- was it opportunistic or were you looking for startup investments actively? How'd that one turn out? Prior to founding the firm, were there any existing firms in the space that you looked to for inspiration? Talk about your first fundraise... you had access to a lot more capital than you closed. Why didn't you raise more? What was the biggest mistake you made when launching your first fund? Now that you're nearly 5 years into Brick and Mortar, is Built/ Construction tech where you expected it to be and are you as bullish on it now as you were then? Do you think a major infrastructure bill gets passed? Trump has been talking about this for years and it seems like, with the current stimulus, now is his opportunity? I have to imagine this will be a big tailwind for some of your portcos (and prospectives)? Safety has been an area of interest that you've spoken about in the past. How does that apply in the context of your investment focus and does that change w/ the current crisis? What advice would you give to a founder in the built technology space and how might that advice differ from the standard advice given to SaaS or consumer tech companies? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Welcome back to TFR for the first Investor Stories Cram Session. In these special releases, we have aggregated the Investor Stories from previous episodes. In this installment, the following investors are featured: Jonathan Struhl John Greathouse Joanne Wilson Semil Shah Bryce Roberts Troy Henikoff Jason Heltzer Christopher Mirabile David Brown Brad Feld Each investor highlights a situation where they decided not to invest, why they passed, and how it played out. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Somesh Dash of IVP joins Nick on a special Crisis Coverage installment to discuss Late Stage Impacts and Prioritizing Mental Health. In this episode, we cover: Quick background and what led you to venture/IVP? Overview of the firm and your focus? Covid impact on later stages The 2008 crisis... '08 was still strong for C round funding, steep dropoff in 2009, stayed pretty low in 2010, returning to fairly strong levels in 2011... thoughts on timing, severity and duration of impact on later stage funding? Directional impact on average valuations at late stage? Thoughts on exits? What do you think happens in the secondary market? What do you think happens with the well-funded, late stage companies in markets that are highly dependent on social interaction, mobility, travel, etc.? Reasonable to complete deep diligence in a completely remote environment?! You've been w/ IVP since '05... best recollections of changes in strategy made at IVP in '08/'09? Suggestions on how early-stage VCs should adapt the playbook? Best moves startups made to survive and/or thrive at that time? Biggest mistakes you've seen CEOs make? Investment in Lyra's Series C.... Mental health now more than ever... expectations for industry amidst WFH/social distancing? Tips for delivering hard news? -- furloughs, layoffs.. especially remotely Suggestions for leaders to help their people through this? How to keep team morale high? How are you adapting communication or work habits at IVP to better keep engagement of your people, your portcos and your LPs? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Semil Shah of Haystack joins Nick on a special Crisis Coverage installment to discuss VC Fund Management in a Pandemic World. In this episode, we cover: Last time we had you on was Nov. 2017... quick update on you and Haystack since then? LP interaction - are capital call defaults a serious issue to consider in this environment? How do you think investment dollar volume adjusts in 2020 vs. '19? I know you've had a lot of calls w/ friends and mentors lately... what are you hearing from the veteran investors right now? What feedback or insights have surprised you? What actions have you taken since the crisis hit to adjust your own strategy? How do you see the value of face-to-face interaction playing out in the VC-Founder interaction during pitches moving forward? How are you prioritizing reserves when triaging? In the case of a fund running low on dry powder right now, what are your thoughts on reopening a fund? In what cases should an early stage company change their business model to address the changing environment? What are your thoughts on GTM, or changes in GTM, in this environment? I saw that you guys are Crowdsourcing a list of startups who have changed their business model to help fight covid-19. What have been the most interesting so far? Over/under on duration? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Samir Kaji of First Republic joins Nick on a special Crisis Coverage installment to discuss Relief $ for Startups via CARES Act, EIDL, PPP; & How an Extended Downturn Affects Emerging VC Funds. In this episode, we cover: Startups... The CARES Act became law on 3/27, but many are having trouble making sense of it and how it applies... Let's start out w/ the two types of loans that are available to small businesses... First off, can you explain the difference between the Economic Injury Disaster Loan Program (EIDL) and the Paycheck Protection Program (PPP)? EIDL - No forgiveness potential and and requires personal guarantee? PPP - Forgiveness potential and no personal guarantee? Affiliation... Dan Primack was writing about how the 500 employee rule and how much of Private Equity portfolio companies will be excluded b/c of how the language is written. Can you explain the "affiliation issue?" How can this be enforced/checked... so many obscure LLCs used for investment in companies... hard to verify. April 3rd - Is this the date that PPP applications are available? What advice do you have for startups right now, to be prepared and get to the front of the queue? How will seed stage be impacted? Some of the best companies (Uber, AirBnB) first took institutional capital after the 2008 crisis; is now the time to be aggressively investing? VCs... How are the existing funds w/ committed capital adjusting? Will we see a lot of attrition / VC firms shutting down? What are the impacts on firms that are actively raising? Advice for those planning to raise a fund in the next year? What do VCs and LPs need to hammer out before moving forward in this environment? (projections/protocol for capital calls, projections for investments, communication plans, etc.) LPs... What are you hearing from institutional LPs? How about the family offices? Is it still in a crisis/panic mode or have some allocators put together a solid investment plan going forward? If you had to estimate, what % of capital commitments will default and/or be adjusted down? Final thoughts and advice for startups and investors? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

David Horowitz of Touchdown Ventures joins Nick on a special Crisis Coverage installment to discuss How Corporate VC Will Respond. In this episode, we cover: What is your current view of the venture market given the current crisis? Corporates have a history of pulling back in economic downturns, what will happen now? This is your 3rd economic downturn, What is different about this economic period vs. prior recessions? Are there advantages to new corporate funds vs. existing corporate funds? Committed capital vs. not committed You told me you believe corporations are more important in this environment than startups why? What advice do you have for start-up companies on dealing with corporations? Fair that those discussions or partnerships slow down? What is your prediction when things return to normalcy? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Chris Douvos of Ahoy Capital joins Nick on a special Crisis Coverage installment to discuss the LP Lessons from '01 and '08, The Denominator Effect, Capital Calls & Fundraising in a Down Market. In this episode, we cover: What is the denominator problem/effect? Why does it matter? How do LPs react when they face the denominator problem? How quickly do LPs tend to rebalance their investment portfolio? What's the implication to VCs? How should VCs react when their investors face the denominator problem? LPs lose access to future funds if sell position as secondary? When VCs make capital calls at times like these, what's the ripple effect down the line for these LPs? What were some of the typical LP reactions you've seen from the dot com bubble and the 2008 crisis, that you expect to see again? Can you talk more about the thought process of LPs during a crisis like this? Are they rushing to liquidate? Are they putting that money somewhere else? VC capital calls - guidance? What's the impact on VCs that are fundraising? What type of VCs have had success raising in a down market? What are some best practices/principles for managing LP relationships in a time like this?(Chris was in PE, as Co-head of PE Investing at the Investment Fund for Foundations in 2008 crisis) What was the biggest lesson you've learned from previous crises in 2001 and 2008? VC's metrics are dependent on the market, like PME. What's the impact of the current situation on the VCs performance metrics? Is there some downward pressure for VCs to lower the Net Asset Value (i.e. the valuation of portfolio companies) to reflect the current market situation? Can you explain the disconnect between VCs that want to actively invest (because of lower valuations) and the LPs who are rushing to liquidate? What does this mean for later-stage startups that were thinking of IPO-ing in the near future? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Steve Blank joins Nick on this special "Crisis Coverage" installment to discuss The Playbook for Startup Survival. In this episode, we cover: What industries will be most affected by social isolation? How do you see this playing out over the next 3 - 6 months? How does this pandemic and the impact on the economy compare to the past 3 market crashes? Similarities/differences? Having lived through 3 crashes, what's the biggest mistake CEOs make? So lets say I'm a startup founder -- What are the major questions I should be asking before putting a new strategy together? Let's talk about burn and runway -- can you break down the key elements and how much runway one should plan for? What are the first cost cutting measures that should be taken? Should startups consider a change in business model, go-to-market or even target customer -- why or why not? Do you have any guiding principles when it comes to communication -- whether it be to employees, customers or investors? What happened to startup fundraising at different stages (seed, A, B, C) in the last crisis of 2008? You've stated that the health of the venture business may depend on what hedge funds, investment banks, private equity firms, sovereign wealth funds and large secondary market groups do. What are the possible and likely scenarios in your estimation? What advice do you have for those companies that have limited runway (3 months or less)? How about advice for pre-funded startups that are just getting off the ground? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Mark Suster of Upfront Ventures joins Nick on a Pre-Crisis chat to discuss Building a VC Franchise; The Shift to Bite-Sized Video Content; Last-Mile Attribution; & the Impact of Corona Virus Over The Next 6-12 Months. In this episode, we cover: Last time we had you on the show was December 2016. Any notable updates or changes at Upfront since then? Just chatting w/ Minnie Ingersoll and she was saying how great the Upfront Summit was and how I need to attend next year... what were the highlights for you this year? Content companies are beginning to optimize for quick 1-5 minute gaps everyone has in their day, on their commute, between meetings, etc. where really short form content can be consumed beginning to end. You had a chat w/ Meg Whitman, CEO of Quibi at the Summit... and I'm going to read a quote from your blog post about that interview "her analogy of content like "The Da Vinci Code" which had 464 pages and 105 bite-sized, fully realized chapters. In essence, you're not intimidated by the size of each episode so you dig in and might just read 8 chapters in a sitting before realizing you read 35 pages. And so it is with video." Clearly Quibi is trying to capitalize on this short form video content w/ A-List celebrities and over $1.75B in venture funding... Mark, do you believe this is significant emerging trend or is it overhyped and overfunded? Quibi successfully sold out of $150m in first-year ad inventory even before they launched, which says a lot about the current marketing landscape. Channels like Google and Facebook are becoming saturated, and marketers are desperate to find that new channel that will give them an advantage... thoughts here on the macro digital marketing landscape? Seen any great companies doing last-mile attribution? - Whether it be the corona virus, the election and/or a potential market correction... what do you think the next 6-12 months will hold and what effect will that have on early stage startups, funds and IPOs. What's the biggest mistake LPs or the VCs that are guiding them, make when co-investing? Who haven't you gotten yet as a featured guest at the Summit that you'd like to get in the future? Since we last spoke, you've inserted an "Inclusion Clause" into your term sheets at the firm. Why'd you do it? Talk a bit about investing... You wrote a blog post about key lessons since the first VC check you ever wrote. Can you highlight the most critical things you've learned. - Assessing the intangibles are so important when evaluating an early stage founder ie. grit, personality, drive etc. Are there specifics methods you apply to assess for these intangibles? Are there any traits or characteristics that you think are being over-indexed on by some investors? Jason Calacanis was on recently and mentioned that you work harder for your startups than anyone else... what is your playbook for helping startups and what determines your level of involvement? In early 2019, you wrote a post about why seed investing has declined. You ended the post saying "Seed investing is here to stay (although the firms may change — with some seed funds becoming A investors)." What are the biggest shifts you see happening in early stage VC? It looks as though you took a 4 month "forced hiatus" from the blog. What was the motivation for the break? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: John Vrionis David Horowitz Cyan Banister Each investor discusses a portfolio company that did not survive and why it was that they failed. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Ryan Gembala of Pathbreaker Ventures joins Nick to discuss Breaking Convention, Hitting The Fundraise Wall & Why Deep-tech Is Not More Capital Intensive Than Software. In this episode, we cover: Backstory/Path to Venture Talk about your time at Facebook and working in M&A. What's the thesis at Pathbreaker? How do you define pre-seed? Most of your dealflow inbound or outbound? Quote from the website: "We don't believe all great companies, nor all phenomenal investments, look the same early on. So we are flexible, realistic, and patient - solving for supporting the founders best-suited for tackling the most meaningful problems." I'm curious, what are the must-haves that cut across all investments that you do? You've said to me that hardware isn't more capital intensive than software. As a hardware investor myself, that was refreshing to hear but I'm sure there are many founders and investors that would strongly disagree. Why is not more capital intensive? Do you think the time horizon to exit is longer? We've all been in this situation where founders hit a wall — they're running out of money, having a hard time telling your story, investors aren't pulling the trigger to invest, there are team challenges, maybe trouble converting from pilots to licenses... Give us examples of how you dig in and help when it gets tough. We've seen some recent failures or, at least, setbacks in the automation/robotics space. High profile companies like Zume pizza and CafeX have had significant challenges... what's your take on where these companies went wrong? What's your POV on robotics investing and the types of opportunities that are going to be successful? Just speaking to Kane Hsieh at Root about the effect of automation, robotics on jobs... what's your stance on the impact of these technologies on employment? You've had a number of Series A's just here in the past couple of weeks... seems like every time we connect you are dealing w/ a number of up-rounds at A and B. Clearly something is working so congrats on the early success. Talk to me a bit about how hard it is to raise a Series A? Different types of companies have to achieve different milestones/benchmarks to raise and A but have you seen any common traction levels or standards to successfully close an A round? For founders that are considering M&A and maybe some options are emerging for exit... what advice would you have? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Jeremy Neilson Jason Whitney Jenny Rooke Each investor describes the most unusual situation or pitch that they've encountered as an investor. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Alex Osterwalder of Strategyzer joins Nick to discuss The Ultimate Testing Framework. In this episode, we cover: Take me back and talk through the origin of the business model canvas? Just to refresh listeners can you provide a high-level overview of the business model canvas and how it's used? Let's chat about your new book, Testing Business Ideas, co-authored with David J. Bland... Why'd you right the book? Who is the target audience? If I'm the reader, what outcome can I achieve after reading this book and applying it's principles? What are the four phases outlined in the book? Walk us through the objective and key elements of the testing phase. A significant focus is the elimination of risks? How does one systematically reduce or remove risks from their business? We recently had Leo Polovets on the program and discussed the challenge of balancing testing with executing. I think it can be difficult to know when something is working well enough that you should stop testing and move forward quickly in that direction. What's your guidance here? How does one avoid getting too caught up in rigid frameworks and checking boxes vs. finding that key insight that warrants 90+% of their attention? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Scott Dorsey Jeff Clavier John Fein Each investor illustrates a critical lesson learned about startup investing and how it's changed their approach. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Jason Calacanis joins Nick to discuss Unicorn vs Pegasus, The Softbank Effect, & Impacts of a Recession on VC. In this episode, we cover: Last time we had you on the show was July 2017. What big things have happened over the past (almost) three years with yourself and Launch? Last time you talked a bit about the "Goldilocks zone"... sort of that post-seed, pre-A round. Is that still the stage getting most focus from you? I read an article where you suggested that SoftBank is changing the way Silicon Valley thinks about going public. What are the biggest positive effects you've seen from the Vision Fund? What about negatives and adverse effects? The volume of startups seems to be ever increasing... Any advice for founders on how to stand out? Lots of people talking about an upcoming recession in 2020. If a recession were to hit, what happens to venture? How do you think it could potentially impact startups as well as investors or VCs? How does your investment strategy change in a recession? Anything founders should should do to prepare for a correction? As part of the fallout from WeWork... I've been hearing a lot of VCs talk about a shift from growth at all costs to a focus on profitability. Are these empty words or are you seeing a material change amongst VCs? Want to get your input on investment and selection... First off, in the book, if memory serves, you suggest angels should focus exclusively on SF-based startups and founders should relocate to SF. We recently committed to a Launch Accelerator company that is not in SF, they're in Chicago. Have your thoughts changed on location? What is a unique requirement or heuristic you use that you don't think other investors consider? What are your biggest red flags or dealbreakers? What are some acceptable risks or issues vs. what's not acceptable? I notice you talking about Pegasus startups (vs. Unicorns). What the heck is a Pegasus? What tips do you have for founders to reach the Unicorn as well as Pegasus status? You also talk about the "Dark Pegasus" can you give us some insight into what that entails and how to avoid these startups as an investor? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Scott Kupor Michael Cardamone M.G. Siegler Each investor discusses sectors, drivers and/or trends that may have a significant impact in the future and are potentially positioned for outsized-returns. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Minnie Ingersoll of TenOneTen Ventures joins Nick to discuss Embracing Failure, Capitalizing on Crisis & Building Resilience. In this episode, we cover: Backstory/path to Venture You co-founded Shift, which you scaled to $100M. What was the most unexpected/surprising aspect of leading and scaling a venture-backed startup? Where did you spend most of your time (and mindshare) at A vs. B vs. C/D? What was it like building a venture-backed startup as a woman? Tell us a bit about the thesis at TenOneTen. I was recently speaking with M.G. Siegler about the societal impacts of tech... all of which are not positive. I know you're a mother, so this probably takes on new meaning for you... but how to you consider social and societal responsibility in your role as a tech investor? You've experienced early struggles in your life that have informed your approach as an investor and founder. Can you talk about what you've been through, the impact and the perspective you've gained from it? Is failure acceptable? As an investor failure makes me really uneasy and I've not had to deal with this yet with a portfolio company but I'm sure it's just a matter of time. What's your stance on failure and how to speak with founders about it? You've spoken about the importance of founder resilience... Is it something you select for in investments or something you work on with existing portco founders... trying to help them build resilience? How are the challenges for women similar different as a founder vs. investor? Favorite Podcast guest? Best/favorite low profile investor in LA? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Jim Kim Courtney Reum Aydin Senkut Each investor highlights a situation where they decided not to invest, why they passed, and how it played out. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Leo Polovets of Susa Ventures joins Nick to discuss Raising Fund III, A Framework to De-risk Your Startup, & When to Explore vs. Exploit. In this episode, we cover: Give us an update on your investments at Susa since we last chatted? How has the thesis at Susa evolved over the past couple of years? Do each of the GPs at Susa have specialty areas of focus? This year Susa closed on 2 new funds - Susa III a $90M early stage fund, along with your first opportunity fund to which investors committed $50M. What was the elevator pitch to LPs and what worked well in the first two funds that resonated with LPs, leading to the successful raise? What would you have done differently in Fund I and Fund II if you could go back? What it takes to raise a Series A... often founders will have a singular focus on the vanity metrics -- they assume if they hit $2M in ARR they'll attract the A round at an attractive multiple from Tier 1 investors. But, we've seen this play out and it's not all that's required. Why is a singular focus on ARR a poor approach to raising money? Leo, you have an original framework here focused on de-risking the the major risks centers facing a startup. What are the high-level principles? The 9 risk centers that you've identified include Product Market Fit, Product Quality, Team, Recruiting, Sales, Market, Funding, Short-term Competition, and Long-term Competition -- can you pick one of these areas and walk us through an example? What are the common mistakes founding teams make with regard to these risks? Talk a bit about the balance between testing and execution? How should founders balance figuring out the best path forward with running fast in the direction they think is best? Increasingly our founders have been sending us dealflow, operating as scouts, making angel investments in early stage companies. Where do you stand on this -- distraction that should be avoided or net benefit to those involved? In what ways have you changed most as an investor since the early days? One piece of advice for founders -- what is it? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Adeyemi Ajao Ash Rust SC Moatti Each investor discusses a portfolio company that did not survive and why it was that they failed. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Welcome back to TFR for another Cram Session. In these special releases, we have aggregated the takeaways and tips from previous episodes. In this installment, we will be recapping the following episodes: 138. How to Angel Invest Like the Best, Part 1 (Jason Calacanis) 139. How to Angel Invest like the Best, Part 2 (Jason Calacanis) 142. Beacon: An Engineering Systems Approach to Investing, Part 1 (Chris Farmer) 143. Beacon: Modernizing the VC Firm, Part 2 (Chris Farmer) To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Mark Suster of Upfront Ventures joins Nick to discuss Economic Theory in Venture Capital. In this episode, we cover: You've written about a major lesson from Clayton Christensen's book, the Innovator's Dilemma, which was one of 'deflationary economics.' Can describe what this means and why it should be a focus for startups? In light of deflationary economics, what are the key questions that a founder should ask him/herself about the business? Why is it that incumbents have such a hard time responding to startups w/ this approach? What should new market entrants focus on when it comes to price vs. functionality? At a high-level what are your thoughts on the trade-offs between growth and profitability? What are your impressions of what Bryce Roberts is doing at Indie VC? How have your thoughts on investment psychology and economics been influenced by The Black Swan by Nassim Taleb? What other principles of economics, that we haven't touched on, have informed your investment philosophy? In light of today's topics, what are the key things you're looking for in startups? Can you talk about Defy Ventures and your experience visiting California State Prison and the impact that Defy is having? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: John Vrionis Bradley Tusk Oren Klaff Each investor describes the most unusual situation or pitch that they've encountered as an investor. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Jason Whitney of IU Ventures joins Nick to discuss University-Affiliated Funds & Angel Networks. In this episode, we cover: Backstory/path to venture At IU you have 3 core initiatives - The Quarry, IU Venture Fund and the IU Angel Network. What's the focus of each? Talk about the investment focus for the IU Philanthropic Fund. What're the criteria to be eligible for funding? How does IU Ventures support the University's mission? How does it affect or benefit current students? As a broader goal, I know the organization ultimately hopes to entice investors and entrepreneurs from around the country to return to Indiana as a result of participating in the network. Are you measuring this and are your efforts working thus far? So, a criticism of both university venture funds and angel groups is speed -- traditional angel groups and academia move slowly with investment decisions. How do you combat that issue for founders raising on a tight timeline, trying to close a round? I was speaking with a university-affiliated investor just last week and he was saying, there's just not enough deal flow when you restrict investments to companies that have a specific university affiliation... do you agree/disagree? I've heard from a number of the Alumni Ventures Groups in recent years -- there are folks leading funds and angel groups with alumni from a particular university... are you a part of this effort and what's your impression of the Alumni Ventures Groups? Let's talk more about the IU Angel Network. How do you go about becoming a member? What do you gain access to as a member? Aside from the university affiliation, which is appealing to many, what advantages and points of differentiation does IU Angels have vs. other angel groups? For the founders out there... why should they fight to get IU Ventures and/or IU Angels on their cap table -- how specifically are you driving success beyond that of other investors? Advice for investors? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Craig Wortmann David Horowitz Cyan Banister Each investor illustrates a critical lesson learned about startup investing and how it's changed their approach. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Jeremy Neilson of Assure joins Nick to discuss SPV's, Side Cars, & The Syndication Surge. In this episode, we cover: Quick walkthrough of your background Can you give us a brief overview of Assure? What is an SPV Investment in the context of this discussion? Can you walk us through the history of how sidecars and/or angel groups have handled (or mishandled) these syndication style investments in previous decades? Why do you think startups and seekers of capital are increasingly raising through SPVs and targeting syndicate leaders? What are the pros and cons of utilizing an SPV as an LP or individual investors? What are the pros and cons of utilizing an SPV as an institutional investor or syndicate leader like myself? Do the lead investors on these SPVs make money upfront -- initiation fees, mgmt fees, broker/transaction fees? Some critics of the SPV model may say that the fees associated with SPVs can also create misalignments between the VC and LP. I haven't heard this critique myself but what are your thoughts on comments like these and how should the vehicle be structured to avoid misalignment? With the SPV model, you're providing members with specific rights, such as redemption, voting, and pro-rata rights. Talk about thee member rights and its effect on the associated parties. From the investor's standpoint, are there any issues or risks associated with providing such rights and what's your opinion on how it should be handled? What are your thoughts on sidecar investments and how should they be handled correctly? What are some challenges and in what situations do they work best? Do you see fund managers that use SPVs exclusively for pro ratas? What are the advantages here? What are the regulatory risks for sidecar funds? How big should a side car fund be and what's the appropriate minimum contribution? SPVs are viewed by some VCs as passive investors (non-strategic money) and that the company should have pursued more active investors. An SPV leading the round has the potential to magnify this thinking even further. What's your opinion here and what advice would you have for those raising capital? There are other platforms offering "SPV as a service"... platforms that you've powered on the back-end like AngelList and SeedInvest. Why would lead investors use you over one of the other platforms? At the VC or PE fund-level, you also offer fund administration. What does that entail and how is it different than admin at the SPV-level? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Bobby Franklin Steve Glickman Cheryl Cheng Each investor discusses sectors, drivers and/or trends that may have a significant impact in the future and are potentially positioned for outsized-returns. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

M.G. Siegler of GV joins Nick to discuss Streaming Wars, The Future of Mobile & The Evolution of User Interaction. In this episode, we cover: Backstory/path to Venture How'd you find your way from Hollywood to SV? Who was the first VC that, based on your writing talent, saw your potential as an investor? Why did you leave Crunchfund for GV? A little confusion about the array of venture funds affiliated with Google - can you give us a quick overview and whether there is still an affiliation between Google and GV? Tell us about your thesis. How hands-on do you get w/ portcos? How does Jony Ive's departure affect Apple? What are the most valuable consumer tech companies by market cap - five years from now? Right now, in the streaming market, we have a fragmented group of services yet know one platform to unify the user experience... what do you see for the future of streaming? How do you see the competition between Apple and Disney play out? Who wins? Just heard the announcement that Facebook is acquiring CTRL - Labs. Why do you think this is a good strategic buy for FB? removing monotony.... repetitive tasks.... mental fatigue.... Impact of constant stimulation, content consumption, on happiness, creativity, etc.? You've invested in some big names such as Medium, Slack and Stripe to name a few. What's the single biggest common success factor that you've observed across very different companies? What are some of the major trends we will see in mobile in the coming year and what do you think will phase out? Who is your favorite writer in the space? If you ever get around to writing your screenplay, what will you write about? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Michael Cardamone Jenny Rooke Scott Dorsey Each investor highlights a situation where they decided not to invest, why they passed, and how it played out. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

John Vrionis of Unusual Ventures joins Nick to discuss The DNA of Startup Success. In this episode, we cover: Backstory/path to venture. Talk about your experience at Lightspeed and your decision to leave. Where/when did you first meet Jyoti Bansal, the founder, AppDynamics? What's unusual about what you do? 'Unusual Academy' and 'Get Ahead Platform' -- what are they and what's the difference? You've spoken about your team at Unusual being focused on redesign the early-stage VC market and giving founders a distinct advantage. What about your approach gives founders a distinct advantage? You've spoken about founder focus on "How it works" vs. "Why it matters" -- what's the disconnect you've observed with early-stage founders? You've covered your own experience of learning through suffering -- is that also a quality/characteristic you look for in founders? Arrogance vs. Humility -- have you invested in founders displaying these traits? What's been your experience? 3 must-haves that you look for in a new investment? If there's one common theme in failed investments -- what is it? Is there anything unusual about your approach to sourcing? If so, what is it? What are some best practices for founders when picking a VC? Over the past year or so the percentage of total VC dollars invested in early-stage deals fell to the lowest levels the industry has seen in five years. Why do you think this is the case? You've talked a lot about the seed funding gap and challenges to get to Series A. I'd love to get your thoughts on what's required to raise an A? Do you focus on product-market-fit prior to the A round -- if so, how do you define it? What's the problem with Sovereign Wealth in Silicon Valley? Do you have specific examples of unintended consequences or challenges with certain types of LPs behind a VC fund? Re. founders -- You've said that "the biggest mistake you can make is taking an investment from a mega-fund" Why? How has the early-stage venture landscape shifted from previous years? What do you expect to see in the future? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Jeff Clavier Bradley Tusk Scott Kupor Each investor discusses a portfolio company that did not survive and why it was that they failed. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Courtney Reum of M13 joins Nick to discuss Creating Unfair Advantages, Surviving Founder Burnout and Driving Successful Exits. In this episode, we cover: Backstory/path to venture Tell us about your experience being an investor at Goldman Sachs and working with brands like Procter & Gamble, Under Armour and Vitamin water. What are some takeaways you got from that experience that influence you today? You and your brother founded VEEV Spirits which became the first line of organic ready-to-drink cocktails. VEEV received the Technomic Fast 50 Award and was named an Inc. Magazine 500 Fastest-Growing Companies in the U.S. What are some key factors that helped you establish such a successful brand? Tips for founders? Tell us about the approach you used to raise capital for Veev? Tell us the story behind founding M13. What was your vision for the firm early on? What is your current focus/thesis at M13? Tell us about your "repeatable playbook" approach. You took some big risks investing early in companies like Lyft, Ring, and Slack, which of course has paid off. Can you share with us some key points as to why you invested and how you were able to get conviction so early on? I want to switch gears and talk a bit about your book that you and your brother, Carter, wrote "Shortcut Your Startup." The book is focused on separating yourself from the pack and flipping traditional startup advice on its head to provide an empowering toolkit for founders. Can you dive into that toolkit and a brief summary of the book? The benefits and biggest challenges to working with your brother? One of the topics in the book I thought was interesting was "obsessively take advantage of your unfair advantages" tell us about what this means and how founders can implement it. Another topic I want to ask you about was "Success doesn't equate to a successful exit" - What does lead to a successful exit and how do you gauge that you're on the right track? You also talk about "getting into the trenches" and "knowing if you're a speedboat or a sailboat" in the book. Can you give us some insight on these topics and why they're important? From your experience, what do you think contributes most to founder burnout and how do you avoid it? What advice would you give CEOs or other C-suite executives to keep employee morale high and help their employees thrive? What are some of the biggest challenges you've faced as a founder and that you commonly see founders face today? You have a passion for startups that are thinking about what consumers don't even know they want -- maybe for 10-20 years. Yet, in the future can't imagine living without. How do you vet a startup investment with such nascent consumer demand? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: David Horowitz Jim Kim Ash Rust Each investor describes the most unusual situation or pitch that they've encountered as an investor. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Oren Klaff of Intersection Capital joins Nick to discuss Flip The Script & Perfect Your Pitch. In this episode, we cover: Backstory/path to finance What led to the founding of Intersection? What's your mandate and focus at Intersection? Tell us about the Velocity product. Your bestselling book Pitch Anything, provides a detailed methodology on effectively presenting, persuading and winning a deal during the pitch. Can you go over some key takeaways from the book for listeners? In the book you talk about the "S.T.R.O.N.G Method." Can you briefly summarize the most important components of this approach and give some examples on how it works? Your newest book "Flip the Script: Getting People to Think your Idea is Their Idea" is about to launch on August 13th.. why'd you write the book? I liked the title of your first chapter... Inception. Many will remember the blockbuster movie. What's the "We are evolved distrust information from the outside world"... how does this impact the approach? Is there a framework of structure that folks should follow to successfully flip the script? What's the biggest mistake folks make when trying to sell? Whats' the most practical, simple, pragmatic advice you can give... let's say a founder trying to raise venture capital... that they can take away from this convo and implement immediately. Do you have a set of questions and structure for every sales discussion going in or do understand the concepts and then treat every conversation organically? Any tips on getting the meetings w/ prospects? Let's say someone has optimized their close rate... do you have tips on securing more qualified meetings? If you write another book... what topic is next? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Adeyemi Ajao Roy Bahat Cheryl Cheng Each investor illustrates a critical lesson learned about startup investing and how it's changed their approach. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

John Gannon of Going VC interviews Nick to discuss The Story Behind TFR & New Stack Ventures. In this episode, we cover: How did you get Brad Feld on early on? How did you stay true to your vision when you were getting asked early on by entrepreneurs to feature them on the podcast? (you mentioned this in episode 10, w/Brad Feld) If you were starting TFR again, in 2019, what would you do differently? Why the podcast format vs blogging vs. ... ? When did you know that the podcast was "working" ... bringing deal flow or whatever you thought was a strong signal that things were clicking for your audience? What surprised you once the podcast got "big"? Anything unexpected on the positive or negative side? How did the podcast tie into your recent fundraising process? Where did it help, and did it hurt or cause any issues, too? How did the podcast tie into your recent fundraising process? Where did it help, and did it hurt or cause any issues, too? Do you measure deal flow that is podcast related, and how much of your deal flow is it? How many completed investments came from the TFR community? I have heard from multiple Angel List employees re: Angel List syndicates that it's very hard to get people to back a deal unless the deal has a lead like Sequoia or KPCB or another top firm attached to it. Has that been true for your syndications? If no, why? What benefits did you see by using Angel List syndicates platform so early on? For those thinking of starting up a syndicate now, how has the game changed? How do you find and vet interns for your fund? Or how do they find you? Are there any processes at your fund that you think work REALLY well, and what are they? How do you execute them? Since we're both Dads: Other than having less time now that you have a child, have there been new tactics you've applied to the podcast, the firm, etc to help you get more leverage at work and free up time for home life? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Michael Cardamone of Acceleprise joins Nick to discuss SaaS Acceleration, Sales Savvy Founders & the Rise of Tech-Enabled Services. In this episode, we cover: What is Aaron Levie like to work for? Backstory and path to Acceleprise When you started Acceleprise a lot of folks told you not to -- the world doesn't need another accelerator. Why did you proceed? Why an Accelerator and not a traditional VC fund? Check size then and now? The biggest criticism of accelerators that I'm hearing from investors is that accelerators admit companies that need a lot of help and can't figure things out on their own -- and those are not the companies that one wants to invest in. What's your response to these folks? You've mentioned your interest in working w/ founders that have a "willingness to sell." How specifically do you develop the sell-skills of founders that are willing but green w/regards to sales. What are some the best demand-gen techniques that you use? Talk to us about how you think through pricing models and strategies at early-stage SaaS businesses. ACV initial vs. expansion rev opportunity Lemkin.. TAM... initial traction in SOM/Beachhead niche market is most important. Any company that gets traction here can find a $1B market. Agree, disagree? We talk a lot, on this show, about either why SF is the best place to build a company or why any place but SF is the best place to build a company. You've done both -- Objectively, can you break down the biggest advantages to building in the valley vs. the advantages to building outside? Let's talk a bit about pedigree -- most investors have simple heuristics here. If the founder didn't study at a Stanford/Ivy level institution... pass. If the founder didn't work for a FAANG tech company or fast-growing private tech company... pass. At New Stack, we like to say we're in the business of exceptions (deals that have all the right ingredients for success -- except these optics of provenance). Michael, where do you stand on pedigree and how do you define it? What percentage of the companies in the cohort to you invest in at completion? In terms of measuring success -- what key metric do you measure that you're most proud of? Over the past few years, what trends or major changes have you seen with regards to SaaS that founders and investors should be aware of? Tech-enabled services - a real trend or not? Venture fundable? There has been some recent issues in the Tech space with employee options -- what have you witnessed and what would you like to see change? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Scott Dorsey Aydin Senkut Cyan Banister Each investor discusses sectors, drivers and/or trends that may have significant impact in the future and are potentially positioned for outsized-returns. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Tae Hea Nahm SC Moatti Jeff Clavier Each investor highlights a situation where they decided not to invest, why they passed, and how it played out. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Scott Kupor of Andreessen Horowitz joins Nick to discuss Secrets of Sand Hill Road. In this episode, we cover: When Marc and Ben first reached out to you about joining A16Z, you hesitated. Why? "When Marc and Ben first started A16Z, they described a founder's leadership capability as "egomaniacal"... what do you think they mean by that and do you share this belief? What are the key factors in determining if venture is appropriate for the new business and its founder? How should one decide how much to raise? Scenario I've heard all too often... founder goes out to raise their next round, they've more than doubled the business, hit major milestones but the offers are less than double that of the last round. Scott, can you talk us through the valuation mistakes you most often encounter? Founder has started fundraising... the first step is to get their foot in the door. Talk us through the right and wrong way to get a meeting. You mention the 5 pitch essentials in the book - can you talk us through each? We've done an episode with Brad Feld where we went into detail on the Term Sheet... both Economics and Governance. I don't want to cover each term today but first, related to Economics, what's different now about the Economics terms or the negotiation than what you saw maybe five years ago? Same question for Governance, what has changed and what are the key terms in focus? Do you have any guidelines on how much of their business founders should sell in any given round? So the next topic, we've all seen before, assuming you've been doing this long enough, but a founder is struggling to raise, has little capital left, and is scrambling to get creative. What are some of the more common mistakes and outcomes you see in this scenario? Why should entrepreneurs care who the LPs are behind the VC fund that's investing? We could spend hours discussing boards... any key items you'd like to highlight w/regards to boards? Talk us through the acquisition process? IPO process? Great summary section where you talk about good VCs... can you recap your thoughts on what Good VCs do? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following individuals are featured: Nick Moran Shea Balish Henri Deshays This will be a unique segment where, Nick Moran of New Stack Ventures and Henri Deshays of NewFund will discuss why they invested in Curv Labs. Founder of Curv, Shea Balish, will join Nick and Henri to discuss his startup story and how he chose New Stack and NewFund to participate in the funding round. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Steve Glickman Craig Wortmann John Fein Each investor describes the most unusual situation or pitch that they've encountered as an investor. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

David Horowitz of Touchdown Ventures joins Nick to discuss Corporate VC. In this episode, we cover: Backstory/ Path to Venture Talk about the 14 years you spent with Comcast Ventures -- what you learned and why you left? What lead to founding Touchdown Ventures? At Touchdown, you partner with leading corporations to manage the complete venture lifecycle from entity formation to investment management…Can you dive into the thesis/focus of the firm? Why would a founder choose corporate VC funding over institutional funding? I was reading through the "Risky Business" blog on the Touchdown website and found some pretty interesting articles…specifically one that talks about "the most overlooked skill in Corporate venture" being deal management…that it "requires more effort than all other activities combined"…why is deal management so challenging? Why do you think CVC's funding has historically been more inconsistent than institutional venture funds? Why are corporations willing to take minority stakes in startups? As Fred Wilson said on CVC—"You want the asset? Buy it." Is there a risk to founders of taking investment from a large corporate that can "look under the hood" and reverse-engineer the tech or exploit the IP? Is the core objective of a CVC financial return or is it more of a strategy play? (i.e. market insight, actively trying to grow certain sectors) How does the mindset of a CVC change in a bear market, especially compared to institutional VC? How does follow-on funding work in corporate VC? If the corporate has a poor financial year, does a lower funding allocation affect follow-on allotment for winners? The firm was recognized by Global Corporate Venturing for having both established and managed the most corporate venture funds to date… At the industry level corp VC has peaked in funding in recent years. Why do you think corp VC has grown to this level and why did you raise the number of funds that you did? One of the articles on the Risky Business blog talks about fraud detection with reference to Fyre Festival and Theranos…Talk about some red flags that an opportunity may be a fraud and what you should do if those red flags are present? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Bradley Tusk Jim Kim Jenny Rooke Each investor illustrates a critical lesson learned about startup investing and how it's changed their approach. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Bobby Franklin of NVCA joins Nick to discuss Immigration, Privacy, and Foreign Investment -- The Biggest Threat to Venture is in Washington D.C.. In this episode, we cover: Backstory/path to Capitol Hill. You served as the Executive Vice President of CTIA --tell us a bit about that experience and how it led to NVCA. At NVCA - what's the mandate? What specific actions does the organization take in order to deliver on this mandate? You just wrapped up NVCA's annual VC's to DC conference this month-- What were the three most critical issues that Venture Capital is facing? I came across your article on TechCrunch about FIRRMA (the Foreign Investment Risk Review Modernization Act) and CFIUS (the Committee on Foreign Investment in the U.S.). Can you talk a bit about the issue the industry is facing and the key players? What suggestions do you have for VCs and high growth companies -- with exposure to FIRRMA and the expanded power of CFIUS? At the VCs to DC conference there was a panel on the rise of populism…Trends from trade to immigration, tax policy and cross-border financial flows, that are rapidly impacting global commerce - Can you talk a bit about these issues and their impact on the ecosystem? Currently large tech companies are under increased scrutiny in DC and policymakers are cracking down on data privacy regulation, antitrust enforcement, etc. Do you think this "techlash" is appropriate or not? What guidance or insight would you give entrepreneurs to ensure that their companies are operating within regulatory boundaries? Any other suggestions for the audience -- a mix of VCs, LPs, Angels and Founders -- on specific things we all can do to support this asset class in D.C.? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Roy Bahat Ash Rust Wayne Kimmel Each investor discusses sectors, drivers and/or trends that may have significant impact in the future and are potentially positioned for outsized-returns. To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Scott Dorsey of High Alpha joins Nick to discuss The Venture Studio. In this episode, we cover: Backstory/ path to tech. The story behind ExactTarget leading up to selling the company for $2.7B to Salesforce. Why'd you launch HighAlpha? Briefly touch on the thesis at High Alpha. I want to deep dive into the venture studio model as it's a bit misunderstood... Can you start us off with an overview of the venture studio model? What are the key differences between a studio model and a traditional venture fund? Why are you doing both at High Alpha? Different studios have different specialities and focus areas - what is your studio speciality at High Alpha? What types of founders and/or businesses are a strong fit for partnership with a venture studio? What do you say to critics of the studio model that say that studios take too much equity? Do you think that a studio-based approach can drive higher alpha ; ) than the traditional fund model? In what ways do your portfolio companies get more value out of a partnership with you than non-studio-based partners? I was browsing the High Alpha website and came across a passage about one of the core components of your process called "Sprint Week" which states "During Sprint Week, we focus on building the Minimally Viable Business (MVB) including branding, prototyping, and go-to-market strategy" Can you dive into the details of Sprint Week and how it helps your portfolio companies? How do you define product-market-fit? In regards to your partnership program at the firm, I see that not only do you partner with top tech corporations but also leading universities and academic programs. Talk about the benefits of these partnerships for your founders in terms of talent, networks, and technology? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.