17min chapter

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

142. Beacon: An Engineering Systems Approach to Investing, Part 1 (Chris Farmer)

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

CHAPTER

Data-Driven Investing and Deep Mapping

In this chapter, they discuss their approach to investing, which involves doing heavy research in existing domains, such as autonomous driving cars, AI, FinTech, consumer transactional businesses, and SaaS. They create deep maps of these areas, analyzing factors like secular headwinds, technological components, potential winners and losers, and profit pools. They also use a network of advisors and corporate partners to refine their perspective. Their research-driven approach allows them to have a unique perspective on markets and invest in areas that are not as common for other funds.

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