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

Brendan Wallace of Fifth Wall Ventures joins Nick to discuss Kingmaking, De-Risking Every Investment & the Future of Real Estate Tech.  In this episode, we cover: how building a fund is different from a startup why fifth wall invests in real estate tech why they take a different approach to workign with LPs and portcos how large corporate LPs get comfortable with threatening tech that can destroy existing asset value Brendan gives an overview of the real estate tech landscape and how it's segmented why he thinks no other funds are focused on this sector the common demoniator he looks for in startups the concept of the built world and how tech will bridge the gap between physical and digital the most disruptive ideas he's come across in real estate how the hot trends like AI, AV, robotics and VR/AR will effect the sector and finally, what's surprised him most since raising fifth wall fund 1   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

J.B. Pritzker of Pritzker Group Venture Capital joins Nick to discuss his impact on tech in Illinois, where he gets his motivation and why he's running for Governor. In this episode, we cover the following questions: Take me back to your childhood...What was it like growing up in your family and what did you learn from your parents? Your father and uncle famously built and managed Hyatt Hotels...Who was your biggest inspiration in the family? You could have gone in many directions with your career... hotel industry, education, straight into politics. Why'd you choose the path you did? Who were your primary inspirations in tech? Looking through your accomplishments, you're clearly a builder, a creator, you've got internal drive. Where do you get your motivation? What's the greatest lesson you've learned from your career in venture that informs your bid for governor? If you could go back and talk to young J.B... a J.B. in his teens, what would you tell him? What's the best lesson that you've learned from your kids that has changed the way you approach business and/or politics? We've got Donald Trump in the office of the president and Bruce Rauner in the office of Illinois Governor...Do we really need another rich guy in office? The talent vacuum is real and everyone experiences it. In Illinois, the best and brightest in rural areas, leave for the metro areas. In Chicago, many of the best in tech leave for the coasts. How do we approach talent suck more thoughtfully and address a real problem? Can you highlight your plans for tech and innovation, if you are elected?   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: -Christine Tsai -John Greathouse -Lindel Eakman   Each investor describes a situation where they did decide to invest, what the key factors were that led to “Yes” and how that investment has worked out.   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Bilal Zuberi of Lux Capital joins Nick to discuss Startup Moats. In this episode, we cover: An overview of moats Example companies with moats How to build a monopoly from the outset and if Bilal requires in startups he invests in Incremental vs. step-change innovation and the implications on the breadth and depth of the moat The types of moats Bilal's take on data and network effect-based moats using a business model as a moat His thoughts on building brand as a sustainable competitive advantage How NPS score plays a role An example where Bilal thought there was a moat but it proved not to have the defensibility predicted And finally I get Bilal's take on Lux's investment strategy, their portfolio and how they are building value in the water, on the ground, in the air and even up in space   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Vic Pascucci of Lightbank joins Nick to discuss New Founders, New Stages, New Offerings-- The Only Constant in Venture is Change. In this episode, we cover: Where'd you get your start in venture and how'd your path lead to Lightbank? Can you walk us through the Lightbank backstory... before you joined? What's the current thesis and investment focus for the firm? How active a role do you play with portfolio companies? What, if anything, do you think the team at Lightbank can do a better job of going forward? Do you think your approach is different than Eric and Brad's? Recently spoke w/ Semil Shah about the multiple stages, within seed... pre-seed, seed, inst seed, post seed, seed extension. WTF is going on with the seed round? There's been an explosion of seed funds... do you think this is a problem? Is there a bubble at seed or, w/ the way barriers to startup have come down, is the influx of capital warranted? I'm noticing entrepreneurs moving away from SAFEs and Convertibles... are you seeing the same? If so, why do you think that's the case? How have you seen startup capital raises change over time and do you think it's moving in the right direction? What should every founder be thinking about, during a fundraise, that most often they're not even considering? Are you seeing a difference in the makeup of founding teams and their capabilities? From personal experience, I certainly notice a difference in the style and approach of a early-20's tech founder vs. a mid-30s founder w/ domain knowledge. So, you're a blockchain guy... I see you on various blockchain boards and I know that you invested in Coinbase in 2015... and, on the record, you were very bullish on cryptocurrency's at the time, when many were not. But what's the deal w/ all these token offerings and ICOs? I'm a relative novice here... can you explain to me what's going on and where you see it going?   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Adam Draper Chris Farmer Mark Suster Each investor highlights a situation where they decided not to invest, why they passed, and how it played out.   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Madhavan Ramanujam of Simon-Kutcher & Partners joins Nick to discuss Monetization Strategy & Why Price Trumps Product. In this episode, we cover: What's the backstory and how did you develope this monetization expertise? What VC firms and/or investors have you worked with? What's the most common missteps that innovators make? What are the 4 types of innovation fails? I want to talk about your three key rules for monetizing new products: Having the WTP conversation early, Investigating how to charge not just what to charge and not settling for one-size fits all... Let's start w/ the WTP conversation, walk us through this point and the three questions one should ask? Essentially, are you suggesting that startups run a conjoint analysis to see what features customers want and how much they'll pay or is it more than that? How do the results inform the pricing strategy? Is this the Van Westendorp methodology, if not, how's it different? Talk more about the second rule... Investigating how to charge, not just what to charge. The final rule is: Don't settle for one-size-fits-all... walk us through your point here. form factor, application, segment This is controversial in the venture space where many investors are looking for one business model across all customers... what's your response to VCs here? How do you apply your methodology in situations with a nascent market... where customers may not fully understand their needs, the problems they will experience or the solutions available? Final thoughts and advice for startups that are creating a new product? Any words of advice for investors that are assessing startups very early on?   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: David Verrill Galen Mason Jason Calacanis   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

Zach Coelius of joins Nick to discuss Investing in Rocket Ships Before they Take Off, Part 1. We address questions including: His Path to investing The Biggest difference between entrepreneur Zach vs. the entrepreneur Zach invests in? Best lesson from his startup, Triggit? Right place, right time... how do you apply to investing? Top 3 characteristics you look for in founders? Great entrepreneur... bad idea/bad market... how do you proceed? How about with founders that aren't quite ready yet for funding? How did you get your start on AL? Strengths of Syndication Process? Krypto Labs in Abu Dhabi- major takeaways, thoughts on crypto & ICOs? Early exits... do you take them when you get the option?  At what amount/multiple do you take money off the table Lessons from poker that you apply to investing?   To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.

On this special segment of The Full Ratchet, the following Investors are featured: Andrew Parker Niki Scevak Bryce Roberts Charles Hudson Each investor illustrates a critical lesson learned about startup investing and how it's changed their approach.