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

In this engaging discussion, David Cohen shares a gripping tale of a company held hostage by hackers, illustrating how values can guide difficult decisions. Jacob Effron delves into the evolving world of AI investing, questioning how traditional VC models must adapt for unique funding rounds in this field. Meanwhile, Ethan Austin highlights the frequent issue of founder splits, offering insights into resolution strategies like buybacks and arbitration. Together, they navigate the complexities of ethical dilemmas and the dynamic landscape of venture capital.

Ben Orthlieb, co-founder of Blue Moon and former senior leader at LinkedIn, dives into the future of venture capital. He shares insights on how AI is reshaping investing, emphasizing the importance of personal interactions alongside technology. Orthlieb discusses the challenges traditional VCs face and why access can outweigh simply picking the right founders. He reveals Blue Moon's innovative sourcing strategies, achieving a remarkable 50% graduation from seed to Series A, and highlights how AI identifies overlooked talent in unexpected places.

Madhavan Ramanujam, a venture investor from 49 Palms Ventures, shares his insights on early-stage fund design and founder support. He dives into innovative reserve strategies for a $75M fund, highlighting when to exercise pro rata rights. Additionally, he explains why 49 Palms prefers an invest-and-operate model over sweat equity, aiming to reduce friction for founders and ensure long-term alignment. Tune in for engaging thoughts on building effective capital flywheels!

In this engaging discussion, Jeff Bussgang, a seasoned VC at Flybridge Capital, shares his journey from entrepreneur to investor. He emphasizes the new standards he's set for exceptional founders, spotlighting traits that define 100x founders like impatience and relentless focus. Nnamdi Okike from 645 Ventures reveals his shift to early-stage investing, highlighting the significance of people over traction. Charles Hudson of Precursor Ventures advocates for a people-first investment strategy, showcasing the importance of small directional bets on promising founders.

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.

Navin Chaddha, a managing partner at Mayfield and a 17-time Midas Lister, discusses his journey from founding early internet video startups to shaping today's venture capital landscape. He highlights the critical role of AI teammates in a $6 trillion market and the importance of AI sovereignty for national competitiveness. Navin also shares insights on evaluating founders, emphasizing traits like empathy and integrity. He warns about potential valuation bubbles while encouraging a disciplined focus on long-term returns in venture investing.

This segment features Aaref Hilaly, a General Partner at Bain Capital Ventures, who emphasizes the power of active listening in venture capital. Alongside him, Alexander Niehenke of Scale Venture Partners advises new investors to slow down and truly enjoy the process. They discuss how building strong relationships and contributing non-obvious insights can significantly enhance a young investor's career. Valuable tips are shared that highlight the importance of engagement and appreciation in the world of venture capital.

In this special replay episode Aaref Hilaly of Bain Capital Ventures joins Nick to discuss The Biggest Misconceptions About AI Agents, Why Defensibility Doesn't Matter at Seed, and Whether the AI Center of Gravity Is Shifting to China. In this episode we cover: AI Investment Strategy and Market Utility Impact of AI on Jobs and Early Instances of Reasoning Open vs. Closed Source Models and Data Control Scenario Planning and Unique Insights of Backed Companies Infrastructure and Application Investment Focus Future of Vertical Solutions and Infrastructure Investment Guest Links: Twitter/X (guest) Guest's LinkedIn Company's LinkedIn Company's Website The host of The Full Ratchet is Nick Moran of New Stack Ventures, a venture capital firm committed to investing in founders outside of the Bay Area. We're proud to partner with Ramp, the modern finance automation platform. Book a demo and get $150—no strings attached. Want to keep up to date with The Full Ratchet? Follow us on social. You can learn more about New Stack Ventures by visiting our LinkedIn and Twitter.

In this episode, venture capitalist Mike Maples Jr. shares insights alongside Vince Hsieh and Ryan Delk. Maples highlights the importance of hiring to mitigate risks and adopting strict criteria before launching a startup, exemplified by Kasser Yunus of Applied Intuition. Vince discusses how listening to others can drive rapid growth, while Ryan emphasizes integrity and tough decision-making shaped by his father's influence. Their experiences reveal what truly sets visionary founders apart in the startup landscape.

In this insightful discussion, Aaref Hilaly, a venture investor at Bain Capital Ventures, shares his critical lesson on the dangers of mistiming trends, particularly in cloud adoption. Somesh Dash, general partner at IVP, highlights the importance of collaborative decision-making and encourages investors to 'sleep on it' to ensure readiness before committing. Together, they explore the pitfalls of emotional investments and the necessity of trusting your gut when an opportunity feels confusing. Tune in for valuable insights from seasoned investors!