Investor Stories 355: Why I Passed (Klein, Patricof, Strebulaev)
Jul 4, 2024
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Experienced investors Todd Klein, Alan Patricof, and Ilya Strebulaev share insights on passing on investment opportunities and the outcomes. Topics include regrettable decisions in Chinese elder care, transformative experiences investing in a restaurant chain, the significance of food, missed opportunities like passing on Starbucks, and venture funding for coffee shops.
Investing requires deep understanding of cultural nuances and familial responsibilities.
Underestimating evolving market potentials can lead to missed investment opportunities.
Deep dives
Success of Tovala and Costco Partnership
Tovala, a meal kit company, has achieved three consecutive months of profitability and surpassed nine figures in revenue. Their recent major retail partnership with Costco has been a significant move for the company. By roadshowing across various states, Tovala aims to introduce its high-quality, quick meal solutions to a wider audience, highlighting their success in providing efficient dinner options.
Revolution Growth's Investment Decision on Elder Care in China
Revolution Growth, led by Todd Klein, invested in an elder care business in China, targeting individuals with dementia due to shifting demographics. Despite immersive experiences like visiting a dementia ward, the investment turned out to be a regrettable decision for Revolution Growth. Klein reflects on the challenges faced in understanding the cultural nuances and familial responsibilities involved in elder care.
The Impact of Immersive Experience with Jose Andres
Alan Patrick of Abbey Miller Levy reflects on a missed investment opportunity in Starbucks during the 1980s, underestimating the potential of the coffee shop business model. Despite initial skepticism, the success of coffee shops in evolving markets like Washington reveals a missed opportunity for prime time. The discussion emphasizes the ongoing relevance and profitability of well-established coffee shop chains.
On this special segment of The Full Ratchet, the following Investors are featured:
Todd Klein
Alan Patricof
Ilya Strebulaev
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.