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

480. The OG Seed Investor, Mike Maples Jr., on Spotting Inflection Points, Living in the Future, and Why the Best Form of Competition Is No Competition (Mike Maples)

Apr 28, 2025

Mike Maples Jr. is a co-founding partner at Floodgate and author of the bestselling book, Pattern Breakers. He shares his insights on spotting inflection points that can signal groundbreaking opportunities in startups. The discussion delves into the importance of identifying exceptional founders and the evolving landscape of seed investing. Maples also emphasizes that the best form of competition may be to avoid it altogether, exploring the transformative impact of AI and how specificity can enhance startup viability. His unique approach to pattern recognition offers fresh perspectives for aspiring entrepreneurs.

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ANECDOTE

Early Days of Floodgate

Mike Maples started Floodgate by commuting between Austin and Silicon Valley to catch the new wave of Web 2.0 startups.
He learned deeply about venture through firms and mentors before deciding to commit.

INSIGHT

Seed Investing Evolution Insight

The seed investing boom came from startups needing about $500K, not $5M, enabled by cheaper tech and faster experimentation.
This shift created a gap in capital markets that Maples and peers helped fill early on.

ADVICE

Build Founder Relationships Early

To avoid competition, invest early in founders before they form companies or pitch others.
Build deep founder relationships over months to create fair and trustful investment terms.

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