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

217. Crisis Coverage w/ Elizabeth Yin - Investing After 1 Zoom Meeting, 2nd & 3rd Order Effects of The Virus, and Why "Market Pull" is Critical

Apr 20, 2020

Elizabeth Yin, co-founder of Hustle Fund and a venture capital expert, shares her insights on investing in a rapidly changing landscape. She discusses the impact of the pandemic on various sectors, revealing which emerging businesses she's bullish or bearish on. Yin explains how she can make quick investment decisions after just one Zoom meeting and critiques the traditional early-stage funding process. She also explores innovative funding models, emphasizing the importance of adaptability and understanding product-market fit in uncertain times.

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Intro

00:00 • 2min

From Entrepreneurship to Venture Capital

02:07 • 18min

Navigating Uncertainty: Entrepreneurial Strategies Post-Pandemic

19:40 • 9min

Examining NFX's Rapid Funding Process and Investment Dynamics

28:54 • 2min

Innovative Investment Strategies and Fresh Food Solutions

31:21 • 4min

Navigating Venture Investment Strategies

35:50 • 12min

Engaging with the Community and Closing Thoughts

47:38 • 2min

Elizabeth Yin of Hustle Fund joins Nick on a special Crisis Coverage installment to discuss Investing after 1 Zoom Meeting, 2nd & 3rd Order Effects of the Virus, and Why "Market Pull" is Critical. In this episode, we cover:

Tell us a bit about your background and path to venture
Why'd you leave 500 and start Hustle Fund?
What is the thesis at Hustle Fund?
From a macro standpoint, how do you think the pandemic effects the venture landscape?
What were some trends you were following, prior to the virus, that have accelerated in this environment?
What are some that have regressed?
What are some non-obvious sectors or business types that you're bullish on?
Due to maybe second and third order effects of the virus, what are some sectors you are bearish on?
You’ve said that you can make a decision after one Zoom conversation in 48 hours. Without much time to conduct diligence on the company and its founders, how are you able to get conviction so quickly?
Many of us are trying to figure out how to invest w/o meeting founders in-person... what are some of the key things you’re listening that help you make a quick decision w/o having met the founder?
NFX's launched a new application process where startups can apply for funding, give up 15% equity and receive a funding decision in 9 days? What are your thoughts?
You've stated that long term success for you is in changing the way that early stage VCs invest and think about investing. What's wrong w/ early stage investing and how do you see it changing over the next decade?
I appreciate your contrarian belief that the best startups will be founded outside the Bay Area. Why do you think this is the case?
Are there specific areas/geos you're focused on?
I want to talk about this concept of "market pull"... Can you define “market pull” for the listeners and how you assess whether a startup has it or not?
What advice do you have for investors/fund managers as we proceed amidst a very uncertain future?

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