The Full Ratchet: Venture Capital Demystified

Joe Medved of Lerer Hippeau joins Nick to discuss The 'Softbank Effect', Financial Discipline and the Interworkings of a Top Seed Investment Firm. In this episode, we cover:

 

  • The focus at Lerer Hippeau
  • The adoption and integration of the Binary Capital Portfolio
  • Why they dropped ventures from the name
  • Joe's take on the "Softbank Effect" and the challenges and opportunities created by it.
  • how founders should think about raise amount and valuations
  • The effect of late-stage capital on early stage investors
  • The capital strategy mistakes that lead to startup death
  • Joe's take on early-stage investors taking early exits when they are offered liquidity.
  • The strategy for their sixth, $150 million fund
  • How Joe's team approaches sourcing, vetting, diligence
  • LH's focus on outbound vs. inbound
  • Joe mentions a key analysis item that is often overlooked by many investors
  • Lerer Hippeau's portfolio management process: How often they interact and what activities they engage in.
  • The impact of raise amount on outcomes

 

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Direct download: 163_163._The_Softbank_Effect_Fina.mp3
Category:Podcast Episodes -- posted at: 4:00pm EDT