The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified Investor Stories 451: Why I Passed: Moving Too Slowly, Misreading Return Drivers, and Passing on Lyft (Banks, Tananbaum, Cohen)
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Jan 8, 2026 Lara Banks, an investment professional at Makena Capital, reflects on missed opportunities due to rapid deal flow and unclear return drivers. Jim Tananbaum, founder of Foresite Capital, shares his regret over passing on BridgeBio, emphasizing the significance of timing and founder quality. David Cohen, co-founder of Techstars, recounts his experience passing on Zimride (later Lyft), revealing a shift in focus from ideas to the strength of teams and market belief. Together, they provide valuable insights on the intricacies of venture investing.
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Missed Deals From Moving Too Fast
- Lara Banks missed fast-moving opportunities when deals happened quicker than her team could react.
- She now pre-builds angel networks and prepares mentally to capture rapid rounds.
Repeatability Trumps Luck In Returns
- Lara Banks emphasizes understanding what actually drives returns, not just outcomes.
- She treats repeatability of return drivers as a core part of manager evaluation.
Regrets From Not Following Later Rounds
- Jim Tananbaum regrets passing on Bridge Bio and other founder-led opportunities.
- He traced misses to catching companies too early and not following aggressively into later rounds.