The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified Investor Stories 435. Why Complacency Kills Momentum, The Cost of Over-Diligence, and Accepting the Limits of Control (Walsh, Wang, Hudson)
Oct 23, 2025
In this engaging discussion, Shamin Walsh shares how complacency can stifle progress, highlighting the need for constant evolution in venture capital. Casber Wang warns against the dangers of over-diligence, emphasizing the importance of founder chemistry over past metrics. Charles Hudson reflects on the limited influence VCs truly have, acknowledging that their role often leans towards negative power rather than directive advice. Each investor's lesson offers valuable insights for those navigating the world of startups.
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Never Rest On Past Success
- Success in VC is fleeting; past wins don't guarantee future credibility or returns.
- Shamim Walsh warns that complacency destroys momentum and you must continually perform.
Prioritize Future Potential Over Past Noise
- Don't over-index on historical metrics during diligence at the expense of future potential.
- Caspar Wang advises prioritizing founder chemistry and product differentiation over minor current weaknesses.
Invest In Founders You Want To Work With
- Focus on whether you truly want to work with the founder and can collaborate deep into hard nights.
- Seek founders who are five- to ten-times better in at least one dimension and excite you to partner closely.