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

On this special segment of The Full Ratchet, the following Investors are featured: Aydin Senkut John Fein Cheryl Cheng 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.

Steve Glickman of Develop Advisors joins Nick to discuss Opportunity Zones --- A Fit for VC?. In this episode, we cover: Quick overview of your background prior to Develop Advisors? Walk us through the origin story of EIG? You are also the founder & CEO of Develop Advisors - tell us more about the work you do with fund managers. Let's talk about OZ's -- and we'll start with the basics -- Give us an overview of the $6T OZ program. Incentives aside from tax benefits? Which asset classes are best suited to invest in OZs? How is an Opportunity Zone defined? What credentials make a community an OZ? As governors change -- are these OZs going to change with different administrations? Is the expectation that entrepreneurs will actually relocate to these areas for the HQ of their business? It seems like that is a bit of a stretch. Are there statistics on the number and amount of private capital funds that have been raised with a mandate to invest in OZs? In your estimation, what are some risks factors and/or potential unintended consequences that we should be mindful of? Part of my hesitation around this topic and why I've waited to cover it until I could get you specifically on the program, is because with any new gov't incentive program or over-hyped area in general (like we saw with crypto last year), it attracts a lot of "opportunists" or even "charlatans" looking to capitalize on something that's new and not well understood. How do we avoid and discourage "bad actors" from taking advantage of either LPs or Entrepreneurs? One of the services that Develop Advisor's provides is the OZI or Opportunity Zone Index. What is this attempting to measure? What do you say to the pundits that claim the majority of the benefits will accrue to the financial services investors and not to the distressed communities? 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 Cyan Banister Jeff Clavier 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.

Jim Kim of Builders VC joins Nick to discuss Transformative Tech for Old World Industry. In this episode, we cover: Quick Backstory/ Path to founding tech? Big news a few years ago that Formation 8 decided not to raise a fund 3. What happened with Formation 8 - why the decision not to raise fund 3? Tell us about the thesis at Builders. Why do you think these old world industries haven't been re-invented? I've worked in some old world industries myself... that move quite slowly. I'm curious if you think the timeline is a bit longer for tech companies to scale in these industries, if, for nothing else than the decision makers are much more methodical? What are some of the key technology characteristics you're looking for in the companies you back? Aside from technology, what are the other key ingredients your hunting for? Vertical integration... building your own brand and own the customer relationship vs. serving many others as a component provider? What percentage of your new investments are serial founders vs. first-time and how does your approach differ with each? You've stated that "Synthetic biology will be the most important enabling technology of our lifetimes." Why? Talk about some exciting innovations in the science and data space and what industries will they be most beneficial to? How do you measure success with the companies in your portfolio and how do you help them get to that place? 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 Tananbaum Brian Ascher Tae Hea Nahm 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.

Jenny Rooke of Genoa Ventures joins Nick to discuss Seed Investing at the Intersection of Biology & Technology. In this episode, we cover: Her background in genetics, physics, computer science... and how that lead to venture. How was it to work with Melinda and Bill Gates? You also successfully built the largest life-sciences syndicate on Angellist that is also one of the highest performing syndicates of any sector... I just took a peek at the rankings this morning and both New Stack and Genoa are in the top 5. Of course those rankings are done based on follow-on rate... so, it's nice to see we are in good company, up there w/ you Jenny... but talk a bit about why you started with a syndicate and how you've been able to drive such high performance. You launched the Genoa fund last year... Syndicate and fund now? "Genoa ventures invests in early-stage companies innovating at the intersection of biology and technology"... Jenny, what does that mean to you and what types of companies are you looking for? Adverse effects from Theranos? How and where do you source dealflow? Talk a bit about your evaluation process and some of the unique things that you do when vetting prospective portfolio companies? What's your take on VCs that pick a focus area and stay distinctly in their lane vs. those VCs that may have a focus but tend to dabble in variety of other areas? A position I've heard from many tech VCs is... "There are additional layers of risk in life sciences... the science itself, clinical trials, regulatory approvals, etc. that don't apply w/ traditional tech startups... making it a very difficult category to successfully invest in"... Jenny, agree or disagree? What's the biggest hindrance to either more or faster advancements in the life sciences space? With regard to life sciences... What's required, in terms of progress, to raise a seed round... what about a series A? How do you help your founders navigate the fundraising process where many VCs don't understand the science? Have you invested in startups where the chief scientist is CEO? If so, how to you assess for and/or help coach the commercial skills and leadership skills required to build and scale a venture-backed startup? How do you think the usage of automation and data will play a role in healthcare, therapeutics or other sectors? If early performance is an indication of long-term results, Genoa is well positioned as an emerging brand in venture... but I'm curious to hear what winning looks like for you? How are you keeping score on yourself and portfolio you're building? Talk about some exciting new innovations or trends that you're seeing. Where do you think they will have a big impact and when? 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 Rick Stokes Joe Dwyer This will be a unique segment where, Nick Moran of New Stack Ventures and Joe Dwyer of Founder Equity will discuss why they invested in Winston Privacy. Founder of Winston, Rich Stokes, will join Nick and Joe to discuss his startup story and how he chose New Stack to lead the investment and Founder Equity 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: Craig Wortmann SC Moatti Bradley Tusk 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.

Ash Rust of Sterling Road joins Nick to discuss "Blessed" Teams, Pseudo Deal Leads, and Caps at Pre vs Post. In this episode, we cover: His beginnings in tech and how that led to starting the fund What's the investment thesis at Sterling Road? What's unique about your approach that other firms aren't doing? Something that I think is frustrating for many founders is seeing these idealistic stories of founders that are raising $5M on a $20M cap with zero traction. And, it's also misleading in that I have a number of founders that think they need to be raising a lot more than they are... very early on before indications of product fit or even a focused commercial plan. Can you talk about the profile of these teams that are able to raise seemingly irrational seed rounds and then later let's jump into consequences. The seed round has now divided into a series of phases... we have pre-seed, seed, mango seed, seed+, seed exensions, etc. We've spoken to Semil Shah about this and how it's no longer a stage it's a series of phases and gates. Can you talk about these phases and how founders should think about milestones and raise amounts prior to raising an A? At New Stack we've encountered some strange and troubling circumstances regarding who the lead investor is on a deal and who is not. What are you seeing in terms of who takes the lead and how has that evolved over the past few years? Pro Rata has always been a hot button issue, for a variety of reasons and we're seeing some new challenges emerge as our portcos are raising up-rounds. What are the key issues you're observing with pro rata and what's your opinion on how it should be handled? A number of my founders are either raising more in their seed round or trying to pull-in and raise their A rounds before their ready b/c everyone is sounding the alarms about an impending recession... raise the money now, before it dries up. This seems curious and a bit misleading from my standpoint... What are your thoughts on founders raising more money or raising sooner because of a potential recession? I've been getting a number of pitch decks from so-called "CFOs" at startups... yet, upon review of a LinkedIN profile, it's pretty clear that these folks are bankers. Are you seeing the same and what are your thoughts? I think it was about eight months ago that YC changed its SAFE to a post-money cap, instead of a pre-money cap. They claimed to have the right intentions when they made the switch but we were immediately suspect for a few obvious reasons, some less so. Talk about about SAFEs as an investment instrument and your thoughts on the switch to post money caps. 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: Cyan Banister David Cohen John Fein 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.

Aydin Senkut of Felicis Ventures joins Nick to discuss Iconic Companies, Frontier Markets & a Truly Founder Centric Approach. In this episode, we cover: Backstory / Path to tech in SF? Prior to founding Felicis Ventures, you were a Product Manager at Google, launching their first 10 international sites, its first online search licensing products, and its first Safe Search…talk about what lead to your transition to investing. What's the story behind founding Felicis Ventures? Talk about the investment focus and approach of your firm. It states on the firms website that you back founders looking to open up frontier markets, such as longevity and engineered foods, and reinvent critical markets such as mental health and insurance….what are some of the success factors you've observed in startups trying to create or reinvent markets. You've invested in many iconic companies that have revolutionized their industry such as Shopify, Fitbit and CreditKarma, when investing at early stages, how do you differentiate between the ideas or trends that are going to have this long term affect from the ones that may not be so successful? Felicis states on the site that "The difference between a good product and a great product is one incalculably better than the current alternative. Successful founders have laser sharp focus on true product differentiation, intelligent time and capital allocation" Help us understand what seperates good product from great product. Differences in investing in domestic vs. international startups? You do this survey every year of your portfolio companies... can you talk about the key insights you've learned from doing that? 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: Rebecca Kaden Roy Bahat Elizabeth Galbut 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.

Adeyemi Ajao of Base 10 Partners joins Nick to discuss Automation vs. AI. In this episode, we cover: Backstory - Growing up in Spain and Nigeria and his path to entrepreneurship. Previous to Base10 Partners, you had quite a successful career as an entrepreneur, founding highly influential companies such as Tuenti, Identified and Cabify in Latin America - talk a bit about your experience founding and scaling multiple tech companies, ultimately to exit? How did you, TJ and Reggie come together and decide to create Base10? On the website it says that you "started Base10 to take a profoundly different approach to Automation." Tell us more about your thesis on automation and how it's different. Talk about Automation vs. AI and the potentially misleading guidance that we're hearing from many firms in the valley with regard to AI. Of course, with any big changes that are made to the way people traditionally do things, there is a reaction. While some will embrace automation tools, others will have an adverse reaction. Are there certain sectors, categories or even functions that you think will more readily adopt automation solutions? You mentioned a number of industries... Real Estate, Construction, SaaS, Agriculture, Logistics, Consumer... you have these Partners listed on the website, like Fifth Wall, Bessemer, Owl, Shasta, Bain Capital... can you explain the details of your partnership program? When researching sectors that you're interested in and assessing the opportunity to implement automation tools, what key factors are you looking for? "We know automation. We have seen it succeed and fail. We know what playbook to apply from team structure to go-to-market, automated customer service or data collection systems." Talk to us about the playbook elements that have application across the automation-focused startups you work with? You've discussed the pride you take in being: Hispanic, American, European, African, black and white. It's quite notable that you raised the first black-led VC fund of over $100M. How were able to break through such a significant glass ceiling where others haven't? 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: Evangelos Simoudis Cheryl Cheng Wayne Kimmel 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.

Jeff Clavier of Uncork Capital joins Nick to discuss Market Cycles, Escalating Costs to Start Up, and the Micro VC Surge. In this episode, we cover: In 2004 you started making angel investments in emerging Web 2.0 companies and at that time, only a handful of individuals backed entrepreneurs in the internet space…What was your first investment and how did you get involved in the space? What's the story of the founding of SoftTech--now known as Uncork Capital. What led to the rebrand from SoftTech to Uncork? The investment focus/thesis of Uncork. You mentioned...FitBit, EventBrite, and Sendgrid...it's striking how different each of these businesses are...How you are able to get conviction and understand key success factors across different sectors with different models and overall profiles? How have the market cycles affected VC, your fund strategy, raising capital and the impact on portfolio companies? What are the most common mistakes you see early investors making? With the 600+ micro-VC funds now...is the stage over capitalized? Is it more expensive to build a startup today than 10 years ago? Being that you are from France...in your estimation, what have been the primary differences in funding European based startups vs. those in the States? Said to be one of the most helpful investors in the valley... what are some of the specific ways you get involved? On the firms website it talks about your "No Playbook" and "No Bullshit" approach that you're not delivering "prescriptive formulas on how to build or scale" but instead developing custom plans, one on one. Tell us about these custom plans and the key elements. How Jeff balances time and energy with so many portfolio companies.

On this special segment of The Full Ratchet, the following Investors are featured: SC Moatti Brendan Wallace Vic Pascucci 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.

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: 130. How Amazon, Fitbit & Snap Won; Where Apple, Pebble & Google Did Not, Part 1 (Ben Einstein) 131. How Amazon, Fitbit & Snap Won; Where Apple, Pebble & Google Did Not, Part 2 (Ben Einstein) 133. The Importance of Storytelling, VC EQ, and the LP-GP Dating Game, Part 1 (James R. 'Trey' Hart III) 134. The Importance of Storytelling, VC EQ, and the LP-GP Dating Game, Part 2 (James R. 'Trey' Hart III) 135. Dispelling Conventional Wisdom in VC, Part 1 | Does Capital Drive Outcomes? (Eric Paley) 136. Dispelling Conventional Wisdom in VC, Part 2 | Should Seed Investors Follow-on? (Eric Paley) 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 Tananbaum John Fein Sarah Anderson 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.

Cyan Banister of Founders Fund joins Nick to discuss the Self-Made Engineer, Angel, and Venture Capitalist. In this episode, we cover: So, Cyan you have a really interesting story and background that led you to where you are today. Feel free to start wherever makes most sense but can you talk about your life experience and how it led you to where you're at now? You spoke publicly about your early life at the 2018 TechCrunch Disrupt conference, from living on the streets to becoming a venture capitalist, tell us about this incredible journey, what you accredit your success to and how it lead to venture? Where along the way did you meet Scott? Did you guys every consider raising your own fund? How early are you able to go at Founder's Fund? How do you work with founders post-investment? Judicious with your magic bullets? Have you funded founders with non-traditional backgrounds or missions dedicated to folks living in poverty or providing access to upward mobility? How has your approach changed from your time as an angel to now your experience as a VC ? Do you have any good stories or learnings from Naval? Prior to FF you were an early stage investor in successful companies like Uber, Postmates, PayPal at others... I know you invest alongside Scott... who started angel investing? What was your early approach to angel investing and how were you able to source and select such iconic tech companies at very early stages? Can you tell us a bit about Founder's Fund and your focus? Stage, Sectors, Geographies? "The most promising companies tend to share a few characteristics: They are not popular. They are difficult to assess. They have technology risk, but not insurmountable technology risk. If they succeed, their technology will be extraordinarily valuable. We have no idea what these companies might look like, only that they probably will share these characteristics. Entrepreneurs often know better than we do what might be enormously valuable in the future." -- It's a very humble approach and one that resonates with me and many others. Can you elaborate on the thesis and characteristics of founders that are the best fit for Founders Fund? What's your take on the prevalent number of VCs that remove CEOs of their portfolio companies, on average, within three years of investment? What's your take on contrarian vs. conformist investing... first, how do you even determine what is contrarian and then what's your take on how each ties to performance?

On this special segment of The Full Ratchet, the following Investors are featured: Bradley Tusk Roy Bahat Brian Ascher 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.

Craig Wortmann of Sales Engine joins Nick to discuss Sales Mastery & Storytelling at Scaling Startups. In this episode, we cover: -Craig's background and how he became involved in the early stage tech community. -You've spent a lot of time looking at how companies make this difficult transition from the scrappy, do-it-all world of "Entrepreneurial Selling" to a "Professional Selling" organization. Talk to us about what you've observed and how companies struggle in this transition. -When is the right time to transition from 'guerilla selling' to a more organized, professional process? -When we had Tae Hee Nahm on the program he talked about three different types of sales leaders at different stages of a startup. At the beginning it was a Davey Crocket- like individual, an independent explorer who will find their own path through the wilderness... then at the growth stage, Braveheart individual- someone with that warrior spirit and finally at the scale stage he looks for the Dwight Eisenhower-- someone with political savvy to align all the sales folks and move in the right direction... do you agree or disagree and how does your philosophy differ? -What do you do when a top performing salesperson won't use the tools, align with the culture or conform to processes. -How do you handle it when the product is broken... it's clear that the offering is lacking and the issue is not with sales. -How about situations where one is selling something that doesn't exist? -Storytelling... I see founders fail at this often and even I often failed in telling my story when raising Fund I. Where do most people go wrong? -What's the story canvas and how should it best be used? -You talk about how folks should think about 'capturing, distilling, and telling' the right story at the right time for the right reasons. What's your advice here? -One of the more popular things you teach at Kellogg is called the 'The Perfect Sales Meeting'. Can you talk to us about how one should think, plan and increase their sales meeting effectiveness? -Between sales meetings or when a prospect is slow to make a decision... how does one create urgency and positive momentum toward a decision?

On this special segment of The Full Ratchet, the following Investors are featured: Ash Fontana Wayne Kimmel Chris Farmer 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.

On this special segment of The Full Ratchet, the following Investors are featured: Tae Hea Nahm David Cohen Yoav Leitersdorf 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.

Cheryl Cheng of Blue Run Ventures joins Nick to discuss The Gen-Z Consumer, Real-Time Health Data, and Persistent Top Fund Returns. In this episode, we cover: Cheryl's background in retail marketing and innovation while you were with Clorox and The Sharper Image. How did that lead to your career in venture? On your website it says, "WE HELP ENTREPRENEURS BUILD MAGICAL COMPANIES,"... how specifically do you help? Talk to me about about the Gen-Z folks... this is part of your focus at BRV... what are the high-level characteristics of this coveted consumer segment? Are founders adjusting their approach to tech to better serve this group? How the evolution of mobile apps and real time data has influenced the health and consumer industries? You recently spoke on a panel about acquisitions... can you talk a bit about what it takes to build a company that's well-positioned for an exit? Talk to me about Equity Summit coming up in January... what is it, what was the genesis and what are you hoping to accomplish? This year Prequin reported that BRV is one of the most consistently high performing firms in venture... I know that you've been at this for ten years now at Blue Run... what are some of the key factors that have led to your sustained success? I came across your recent article on succession planning and it had me a bit worried... are you planning leaving the industry anytime soon?

On this special segment of The Full Ratchet, the following Investors are featured: Chris Olsen James Hardiman Elizabeth Galbut 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.

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: 121. Customer-centric Startup Investing Down Under, Part 1 (Niki Scevak) 122. Customer-centric Startup Investing Down Under, Part 2 (Niki Scevak) 124. Space Tech Investing, Part 1 (David Cowan) 125. Space Tech Investing, Part 2 (David Cowan) 127. Sector & Niche Focused Funds, Part 1 (Jordan Nof) 128. Sector & Niche Focused Funds, p2 and Driving Value with a Regulatory Focus (Jordan Nof) 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: Rebecca Kaden Chris Duovos Carter Cast 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.

SC Moatti of Mighty Capital joins Nick to discuss Creating Powerful Networks, 3 Rules for Great Products, and the Future of Mobile Tech. In this episode, we cover: Backstory/ Path to becoming involved in venture? What led you to start Mighty Capital? Talk more about Products that Count, what was the origin and why? You successfully built a network of over 25,000 PM's and continue to lead the network... How have you built such a large network? We all have ever-expanding networks... do you have any guidelines or essential rules to maintaining, staying connected, and strengthening your existing network? In your book, you share 3 rules to create successful products. Can you give us an overview of these rules? You've developed products that billions of people use at Facebook, Nokia and Electronic Arts. Can you give us an example of a key product decision or change that you led? Portfolio companies have said that Mighty Capital brings the "best value for the dollar invested." How, specifically, are you creating value for your portcos? How do you determine if a startup has reached product-market fit? Let's say, for example, you come across a product that, based on the metrics, has clear product-market fit, growth is accelerating and the team appears quite strong... but you have serious reservations about the product itself... maybe you question the design principles, the UX requires significant improvement, maybe it feels like it was designed by an engineer for an engineer instead of a customer... how do you approach a investment opportunity like this? Part of your investment criteria is 'Bay Area-based leadership' Why do you only invest in companies based in the Bay Area? Tell us more about your book... why'd you write it and what would you like readers to gain from reading it? So, to go a bit deeper on mobile and mobile products? What are some new innovations or opportunities that you think will emerge in the coming years? What current mobile trends do you think have a limited shelf life and will phase out? What are the most concerning trends to you... whether they be related to mobile, entrepreneurship, product or investing?

On this special segment of The Full Ratchet, the following Investors are featured: Brendan Wallace Bilal Zuberi Joe Medved 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 Fein of Firebrand Ventures joins Nick to discuss From Operator to Accelerator MD to Fund Manager. In this episode, we cover: So you participated in 5 startups, after which you scaled an organization from zero to 1,500 employees and $2B/year in revenue. Talk about your background and experience at United Health. Tell us a bit about your decision to raise a fund. When I started raising fund I, I had calls w/ 30+ GPs and my target was $5M but I told him, under no circumstances would I raise more than $10M, even if things went really well. He responded that the difference between a $5M and a $10M is significant and that the story and strategy would be very different for the two. So I know that you started with a $7M target and ended at $18M... how did your strategy change and did you get any pushback from early LPs as the fund got larger? How did the process play out... in what ways was it different than what you expected? How early do you go? How did you create urgency w/ prospective LPs to make a decision. From personal experience, I found a number of large LPs that preferred to wait until final close You've gone on the record stating that you'll avoid investing in arrogant founders, where many VCs specifically look for this character trait in entrepreneurs. Do you think it's the best economic decision to avoid working w/ arrogant founders? Everyone says they're a founder-focused VC... but when I speak w/ founders I find that there are very few that are actually qualify. What does this mean from your standpoint and how are you serving founders in ways that others aren't? What are some of the key strengths of your pipeline and dealflow.... how are you seeing more deals and higher quality deals than others? The feedback cycle in venture is really long... you won't truly know how your fund stacks up against others from you vintage for many years. How do you track progress and assess if you're winning over the near term?

On this special segment of The Full Ratchet, the following Investors are featured: Paul Martino Evangelos Simoudis Ben Narasin 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.

Roy Bahat of Bloomberg Beta joins Nick to discuss VCs Ride the Bus, Comeback Cities & Unorthodox Investing. In this episode, we cover: Backstory / Path to Bloomberg Beta Bloomberg Beta has taken a self-described "unorthodox approach"-- Tell us about your approach and why it's unique. I was exploring your page on Github and noticed that you've open sourced the entire operating manual-- why'd you do so and do you think other VCs should do the same? What's worked and what hasn't? You've talked about how you struggled figuring out what you wanted to do for a living. Have you figured it out? So, last year a number of SF-based VCs got on a bus and traveled the Midwest in what they called the Comeback Cities tour. Tell us about the experience and why you and others came to the Midwest to look for opportunities? How did the tour lead to a venture fund? Why do you think it's important to work w/ angels in the Midwest? What surprised you on the trip? Can you talk a bit about machine intelligence and how it's impacting the future of work? How do you see the VC asset class changing over the next few years?

On this special segment of The Full Ratchet, the following Investors are featured: Sarah Anderson Tim O'Reilly Vic Pascucci 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.

Bradley Tusk of Tusk Ventures joins Nick to discuss Corruption, Extortion and the Fight Against Entrenched Interests-- How a VC Saves Startups from Death by Politics. In this episode, we cover: Why and how did you get into VC? You have a nice model where you generate revenue through Tusk Strategies, which allows you to hire great talent and invest forward in startups. How has the model changed over time and how is the organization structured today? How were you able to get allocations and generate dealflow when you were new to VC? You spent some time in Illinois w/ an infamous Governor of our's... and you're very candid in the book about the issues and illegal acts that Rod Blagoyevich instructed you to do. Give us some of the highlights and lowlights from the experience. You highlight the importance of narrative many times throughout the book. Can you touch on the key points w/ regard to picking and framing your narrative for tech startups? You've said that when large industry incumbents are disrupted, "they punch back, and they punch hard"... have you seen situations where startups have died b/c of response of a large incumbent? Talk about some of your experiences. Have you worked w/ any tech companies who's mission doesn't align w/ your political beliefs? How can you possibly win a prolonged battle going jurisdiction by jurisdiction? I enjoyed the section of the book you call "Pick your enemies = Win Your Battles (Strangle the baby in the crib). What's the best message founders can take away from this chapter? We've all heard a lot about the political issues w/ independent contracts vs. employees. Uber has been the headliner in the media but you also cite Handy, in the book, the platform that connects independent handymen w/ home owners... what's been your involvement w/ this issue and where do we stand? Talk a bit about your interactions w/ Elon and the work you did w/ Tesla against the dealership incumbents. You close the book w/ an emphasis on voting and the importance of mobile voting. You've even said that mobile voting is "the biggest disruption fight of them all" and that "restoring our true democracy-- and actually confronting our nation's deepest problem."

On this special segment of The Full Ratchet, the following Investors are featured: David Cohen Ben Einstein Jordan Nof 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.

Jim Tananbaum of Foresite Capital joins Nick to discuss Growth Investing in Biotech, Genomics and Pharma. In this episode, we cover: -His 25 years in the industry working as both an entrepreneur and investor.. often at the same time -Jim's investment focus at Foresight -The major changes in biotech over the past two decades -The key elements he looks for in a business -The main drivers causing more opportunity in the sector -The key challenges to investing in biotech, pharma and genomics -The role of data science in their process -How the experience of building and IPO'ing companies has helped Jim as an investor -How they target specific areas to invest in -Jim's take on predatory pharmaceutical pricing -And finally how some of these solutions might become more affordable for more people that need them

On this special segment of The Full Ratchet, the following Investors are featured: Brian Ascher Joe Medved Ash Fontana Each investor discusses sectors, drivers and/or trends that may have significant impact in the future and are potentially positioned for outsized-returns.

Wayne Kimmel of SeventySix Capital joins Nick to discuss Sports Tech and the Future of eSports. In this episode, we cover: Talk about the investment focus and approach of your firm When did Ryan Howard start working w/ you and how did he become a part of the leadership team? Talk a bit about sports tech has evolved over the past decade. All these players or former players are getting involved on the investment-side... some pretty savvy, some more green... good thing or bad thing? What lens or framework does your firm use to segment the sportstech landscape? I've heard SportsTech categorized into Athlete performance tech, broadcast audience enjoyment tech, and In-person experience tech. Do you consider startups in these categories and where have you seen the most opportunities? eSports (ie. video games as a sport)... has exploded in popularity. Talk a bit about what you're seeing in esports and how you're approaching it from an investment standpoint. I know a number of sportstech investors that avoid the youth, amateur and collegiate markets, b/c they think all the money is in the professional markets. Missed opportunity or is there something to this position? Lessons from owning the USFL champions, the Stars? What are the specific ways you get involved with portfolio companies? You've spoken a lot about the importance of networking, and even wrote a book about it. What key lessons do you have for listeners w/ regard to networking?

On this special segment of The Full Ratchet, the following Investors are featured: Rebecca Kaden James Hardiman Evangelos Simoudis Each investor highlights a situation where they decided not to invest, why they passed, and how it played out.

Tae Hea Nahm of Storm Ventures joins Nick to discuss Go-to-Market Fit, Tidal Waves, Category Leadership & Split-Personalities. In this episode, we cover: What was your path to Venture Capital like and why'd you make that career change? You've been very successful with exits- is there a framework you apply to identify these? Can you explain further about your tidal investing strategy and how it has changed? With your expansive experience in Venture, do you believe are changes necessary in the silicon valley mentality? How active of a role do you play with your portfolio founders? You said you love to take the subway and observe what people are doing- what are some things you are spotting now and what are you spotting across the world. Why'd you write "Survival to Thrival"? Through your recent observations, what is the next big thing you are testing in Korea? You talk a lot about split personalities, when did you realize this was a necessary quality and how long did it take you to develop this yourself? How has this also changed over your tenure as a CEO? You've stated that founders have to stay both pragmatic and ambitious. In tech it's often a problem when you build out infrastructure or sales before everything is ready. On the flip side sharing too many problems or issues with your team and investors will make them wary. Have you had any of these occurrences with finding a balance and what would you advise the audience as solutions. How have you developed a positive attitude despite the dichotomy of feelings day in and day out? How would you advise other founders and CEO's to deal with this? How do you actually identify true passion in founders and what are the criteria you use for this? How have you aligned Storm Ventures proclaimed company culture with the unofficial culture? What is your advice to other CEO's trying to find a fit? In your book you talk about the 3 go to market elements. How long did it take you to realize these 3 things? You talk about identifying problems versus disastrous in the book. Can you tell us just the first step you founders should take if a problem is disastrous? Guest Links: Survival to Thrival Tae Hea Nahm Bio Tae Hea Nahm Twitter Tae Hea Nahm Blog Tae Hea Nahm Linkedin 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: Madhavan Ramanujam Guy Turner Yoav Leitersdorf 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.

On this special segment of The Full Ratchet, the following Investors are featured: Bilal Zuberi Zach Coelius Elizabeth Galbut 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.

Brian Ascher of Venrock joins Nick to discuss Product is Paramount. In this episode, we cover: What is your story at Venrock and how have both you and your firm evolved over the past two decades. Talk a little about Venrock and your focus there. You were a product manager at Intuit, prior to Venrock.. what do you think is the VCs role in shaping product strategy? What are your thoughts on SaaS investing and this increasing focus on the "Intelligent Enterprise" You wrote an article a few years ago called "Goldilocks and the 3 SaaS Go To- Markets Models"... what are the three flavors of SaaS go-to-market and have they changed since you wrote the article? Business Model: Price/seat vs. metered service vs. price for value We're about to close on our first fintech investment for fund I-- can you talk a bit about fintech and why it's so hot? Some have said that digital currencies and/or the blockchain itself will be as disruptive as the internet-- agree or disagree? Something we've neglected a bit on the program is long-term governance. What are your thoughts on Managing a Board of Directors and what situations have you seen play out-- for better or worse? What is the percentage of healthy, well-functioning boards vs unhealthy boards? How are chairman roles assigned/elected-- are they often explicit and how useful is it to have an official Chairman? 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: Paul Martino Jason Calacanis Chris Farmer 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.

Carter Cast of Pritzker Group joins Nick to discuss Leadership from Origin to Scale. In this episode, we cover: You've been a manager and leader in early stage companies – from startups like Blue Nile (from $0 to $50 million in a couple years) to Walmart.com (from $0 – 5 billion in 7 years). I'm sure each was different but tell us about the experience of scaling such high growth companies? What were some of the key lessons or surprises from those experiences? You went from Operator to VC... Why'd you write the book? You present these catchy archetypes in the book... Captain Fantastic; the Solo Flier; Version 1.0; the One-Trick Pony; the Whirling Dervish. Can you give us a brief overview of each and then maybe we can talk about which, in particular, afflict entrepreneurs? Clearly you've thought deeply about the personal side of entrepreneurship and the psychology of founders. When you're looking at new deals, what sort of traits are you looking for in the founders? You and I have discussed your "Launching and Leading Startups" class at Kellogg-- what do you focus on in the class and why? I tend to see different skill sets and strengths of those running an early stage business vs. those running an IPO-ready company and we recently had David Cohen on the show who said that often the person to start a company is not the right person to scale it or take it public. Do you agree or disagree and how do you think about the changing leadership requirements through scale? 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: Sarah Anderson Ash Fontana Chris Duovos 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.

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: 113. The Next Great Startup Ecosystem is… Part 1 (Chris Olsen) 114. The Next Great Startup Ecosystem is… Part 2 (Chris Olsen) 116. Index Investing, Mastering Dealflow & Seeing Everything at Series A, Part 1 (Galen Mason & Brian Axelrad) 117. Index Investing, Mastering Dealflow & Seeing Everything at Series A, Part 2 (Galen Mason & Brian Axelrad) 118. Economic Theory in Venture Capital, Part 1 (Mark Suster) 119. Economic Theory in Venture Capital, Part 2 (Mark Suster) 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: Brendan Wallace Semil Shah Joe Medved 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.

David Cohen of Techstars joins Nick to discuss Techstars: What Worked, What Didn't, What's Next. In this episode, we cover: "What was the original vision for Techstars, when you started? How has that vision changed and evolved to where it is now? Techstars Ventures-- any concern that it sends a bad signal for those cohort companies that the fund does not invest in? What does winning look like for Techstars? How do you measure success? Do you measure common VC fund metrics like TVPI, DPI, IRR, etc? Do you compare yourself against the other top accelerators? If so, where do you excel? Started Techstars Anywhere in 2017, first full class in '18... How does one run a remote accelerator w/ the same quality of an in person one? I'm going to put you on the spot here-- some founders do not have a positive experience going through Techstars or other accelerators for that matter. What type of founder is the program a great fit for and what is it a poor fit for? I've noticed a focus both from you and Techstars on Mental health and wellness-- what are your thoughts on this area as an opportunity for startup innovation? How about the Cannabis industry. You're based in Boulder-- what are your thoughts on the sector and opportunity for founders? Do More Faster is one of the must-have books for every founder. Super pragmatic, actionable insights. What lesson or piece of advice doesn't appear in the book that, now in 2018, you'd add as a critical item for founder's to appreciate as they go through their journey Techstars's FounderCon Europe 2018 was less than 2 weeks ago-- What would you say is the biggest difference you've found when working with European startups vs ones in the US? What do you think Techstars looks like in five years? How do you balance time spent between companies that are succeeding vs. those that are failing? If you were to do it all over again, what would you change? What have you learned most about yourself through your experience at Techstars?" 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: Chris Farmer Rebecca Kaden Ben Narasin 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.