The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified Investor Stories 405: Why I Passed (Terbell and Clark, Patil, Schilling)
Jun 5, 2025
Dive into intriguing stories from seasoned investors as they reflect on times they chose not to invest. Discover a missed opportunity from the mid-90s that highlights the importance of experienced managers. Explore the delicate balance between structured investment strategies and seizing unique chances. Hear valuable lessons on the significance of intuition and disciplined investing, especially in the face of inflated startup valuations. Each tale sheds light on the complexities of venture investing and the emotions behind tough choices.
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Ted Clark's Missed Top Fund
- Ted Clark recounted passing on a now top venture fund early in his career.
- The decision was due to process issues despite the fund's later huge success.
Balance Discipline With Flexibility
- Stick to a disciplined, repeatable investment process but stay nimble.
- Allow room in portfolios for exceptional opportunities beyond the plan.
Avoiding Bubble Investment Traps
- Rusty Ralston and Jay Patil passed on startups during a market bubble due to extreme valuations.
- Many passed startups later failed, validating the decision to stick to fundamentals.