Investor Stories 361: Why I Passed (Jensen, Nozad, Joaquin)
Aug 15, 2024
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Larsen Jensen, Pejman Nozad, and James Joaquin are seasoned investors, each sharing intriguing tales about investment opportunities they chose to pass on. They dive into the regrets over missed chances, revealing the thought processes behind their decisions. The conversation highlights the balance between quality and growth, as well as the risks associated with 'Buy Now, Pay Later' fintech startups. Each anecdote offers valuable lessons and unique insights into the complex world of venture capital.
Investors reflected on their past decisions not to invest in successful companies, highlighting the significance of evaluating startup opportunities carefully.
Concerns over ethical implications in financing sectors like Buy Now, Pay Later illustrate the evolving scrutiny within venture capital investment strategies.
Deep dives
Tovala's Successful Growth and Retail Partnership
Tovala has achieved significant growth with three consecutive months of profitability and over nine figures in revenue. The company has announced its largest retail partnership yet with Costco, allowing a broader audience to experience their meal kit offerings. CEO David Rabi emphasizes that their success stems from addressing customer needs by providing high-quality meals that require minimal preparation time—just 30 seconds for prep and 20 minutes for cooking. This innovative approach has positioned Tovala uniquely in the meal kit industry and has been reinforced by customer satisfaction with products like their recently launched Omaha Steaks cheeseburger.
Lessons from Investment Decisions
The podcast features discussions on the concept of 'anti-portfolios', highlighting instances where investors regretted passing on potentially successful startups. For example, Pajman Nozad shares his experience of passing on Facebook's Series A investment, which has since grown into a trillion-dollar company, illustrating the challenges in evaluating startup valuations and opportunities. Additionally, James Joaquin discusses the decision to forgo investments in the Buy Now, Pay Later sector, citing concerns about promoting irresponsible borrowing among consumers. These reflections underline the importance of learning from past mistakes and the continuous evolution of investment philosophies in a rapidly changing market.
On this special segment of The Full Ratchet, the following Investors are featured:
Larsen Jensen
Pejman Nozad
James Joaquin
Each investor highlights a situation where they decided not to invest, why they passed, and how it played out.
The hosts of The Full Ratchet are Nick Moran and Nate Pierotti of New Stack Ventures, a venture capital firm committed to investing in founders outside of the Bay Area.