The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified 497. Investing in Outsiders, Why Extreme Personalities Win, Weighing Timing versus Trends, and Rethinking Liquidity and Option Exercise Windows (Ethan Austin)
Dec 1, 2025
Ethan Austin, founding partner at Outside VC and former MD of Techstars Denver, dives into the world of venture capital. He shares insights from his journey founding GiveForward and why outsider founders excel. With a focus on unique personalities, Ethan discusses the importance of timing over trends and the traits that make successful founders. He also explores redefining VC roles, fostering employee liquidity, and supporting founders with hands-on guidance in fintech and climate sectors. Get ready for a candid conversation on the evolving landscape of investment!
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Founding GiveForward And The Pivot To VC
- Ethan described founding GiveForward, surviving eight years, and being disrupted when Facebook built a competing product.
- He later sold to GoFundMe and was recruited into Techstars, which shaped his path to founding Outside VC.
Timing And Positioning Trump Product Parity
- Timing matters: staying scrappy long enough allowed GiveForward to catch the wave as Facebook scaled.
- Differentiation by positioning and values beat product technical uniqueness in an undifferentiated market.
Invest Before Trends Become Obvious
- Avoid investing where trends are already obvious because pre-seed investors are often too late.
- Instead, back ideas that sound weird now and could catch a wave later at lower valuations.