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

Guests Mike Schroepfer, an investor at GigaScale Capital and former engineering leader, Shashank Saxena from Sierra Ventures, and Ryan Delk of Primer share invaluable insights on leadership. Schroepfer emphasizes the importance of founder-market fit and having tough pre-investment discussions for alignment. Saxena reflects on the balance between trust and oversight as a founder. Delk reveals his learnings on setting clear quality standards and creating reference documents. Together, they offer a treasure trove of lessons for aspiring leaders.

Jacob Effron, Managing Director at Redpoint, dives into the dynamic world of AI and software investments. He discusses how advancements in model layers are shifting industry benchmarks. Effron argues against the notion that software is dying, highlighting robust opportunities in AI-driven sectors like healthcare and legal. He also shares insights on evaluating hypergrowth startups, emphasizing the importance of team velocity and real product-market fit. The conversation wraps up with thoughts on managing AI's impact on jobs and the future of robotics and material sciences.

Casber Wang from Sapphire Ventures, Lara Banks of Makena Capital, and David Cohen, co-founder of Techstars, share critical insights into investor-founder dynamics. Wang stresses the importance of aligning expectations by posing tough questions about responses to setbacks. Banks discusses how she scrutinizes fund managers and evaluates long-term success criteria. Cohen emphasizes the necessity for founders to connect with investors who have faced challenges, highlighting personal stability as a crucial factor in ensuring effective management.

Kyle York, founder of York IE, shares his shift from angel investments to larger checks for scalable companies. Somesh Dash from IVP discusses the vital art of listening, emphasizing how it enhances understanding of founder contexts. Paul Madera, co-founder at Meritech Capital, highlights the importance of conducting thorough diligence and understanding sector dynamics personally, rather than relying on others. Together, they offer invaluable insights for anyone looking to navigate the venture capital landscape.

Kevin Jiang of Mangusta Capital, a venture investor with a focus on AI, shares insights into his missed investment in Zeitview, a company revolutionizing drone inspections with visual AI. Barry Schuler from DFJ Growth reflects on his regrets for passing on LinkedIn and Snowflake, citing valuation concerns and early-stage hesitation. Together, they discuss the harsh realities of venture investing and the critical lessons learned from these missed opportunities.

Victor Orlovski, Founder and Managing Partner of R136 Ventures, shares insights from his journey as a former CTO to leading a $500M venture fund focused on fintech. He emphasizes the importance of entry discipline in investments and how overlooked team dynamics can impact outcomes. Orlovski delves into the transformative role of AI in banking, predicting a future with fully automated banks and new emotional banking experiences. He also discusses the need for founders to deepen their domain expertise to thrive in this evolving landscape.

Join Daniela Binatti, founder-stage leader at Pismo, as she shares crucial advice for early founders on balancing market feedback with unwavering conviction. Mike Schroepfer from GigaScale dives into the art of early-stage investing, highlighting the need for numerous meetings to sharpen judgment. He warns against sticking to rigid rules, urging investors to remain open-minded to unique opportunities. Together, they offer insights on navigating chaos in the startup landscape, making this a must-listen for aspiring entrepreneurs and investors alike.

On this special segment of The Full Ratchet, the following Investors are featured: Barry Schuler of DFJ Growth Ventures Shashank Saxena of Sierra Ventures Jeff Bussgang of Flybridge Capital We asked guests to discuss the most visionary founder that they've worked with and what makes them so special. 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 engaging discussion, Shamin Walsh shares how complacency can stifle progress, highlighting the need for constant evolution in venture capital. Casber Wang warns against the dangers of over-diligence, emphasizing the importance of founder chemistry over past metrics. Charles Hudson reflects on the limited influence VCs truly have, acknowledging that their role often leans towards negative power rather than directive advice. Each investor's lesson offers valuable insights for those navigating the world of startups.

David Cohen of Techstars joins Nick to discuss The Techstars Refresh, Why Bigger Isn't Better, Investing in the Seed-Strapping Era, and Why Quantum May Dwarf Every Tech Shift. In this episode we cover: Refocusing TechStars Programs and Deal Structure Selection Process and Follow-On Investments Successful Programs and Founder Network Geographic Distribution and AI-First Companies Seed Strapping and Capital Efficiency Vertical Networks and Emerging Technologies Future of Venture and Trends Guest Links: David's LinkedIn David's X Techstars' LinkedIn Techstars' 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.