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

On this special segment of The Full Ratchet, the following Investors are featured: Chris Rizik of Renaissance Venture Capital Casber Wang of Sapphire Ventures Medha Agarwal of Defy We asked guests to describe the biggest change to their investment philosophy over the course of their career 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.

On this special segment of The Full Ratchet, the following Investors are featured: Jon Terbell and Ted Clark of FourBridge Partners Lara Banks of Makena Capital Management Jim Tananbaum of Foresite Capital We discuss major conflicts that guests have faced and how they resolved them. 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.

This segment features Mike Maples Jr., a venture capitalist known for his early-stage investments, who reflects on his decision to pass on Airbnb in 2008 and the valuable lessons learned. Nnamdi Okike, partner at 645 Ventures, reveals how founder concerns led him to overlook Skype early on, impacting his investment trajectory. Hemant Mohapatra from Lightspeed India shares his regret about missing out on Postman due to a delayed decision, emphasizing the importance of acting swiftly when conviction strikes. A compelling discussion on lessons learned in venture capital!

Ethan Austin, founding partner at Outside VC and former MD of Techstars Denver, dives into the world of venture capital. He shares insights from his journey founding GiveForward and why outsider founders excel. With a focus on unique personalities, Ethan discusses the importance of timing over trends and the traits that make successful founders. He also explores redefining VC roles, fostering employee liquidity, and supporting founders with hands-on guidance in fintech and climate sectors. Get ready for a candid conversation on the evolving landscape of investment!

Vince Hsieh, an investor at Cypress Growth Capital, shares insights on the importance of building a high-quality network for successful deal flow. Paul Madera, co-founder of Meritech Capital, emphasizes the need to specialize in a narrow sector to develop deep insights. Jeff Bussgang of Flybridge Capital recommends slowing down the investment pace, advocating for quality over quantity to enhance effectiveness. Together, these seasoned investors provide valuable guidance for those venturing into the world of investments.

Shameen Walsh, a venture investor at BAM Ventures, shares insights on effective founder communication and company culture, highlighting the importance of building strong team dynamics. She praises Ryan from Arrow Finance for his deep connection with employees. Alexander Niehenke discusses Shoaib Makani’s visionary approach at Motive, emphasizing customer focus and strategic resilience. Aaref Hilaly showcases Ashwin from Decagon for his rigorous problem-solving skills. Together, they reveal the habits that make exceptional founders thrive.

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.