The Full Ratchet: Venture Capital Demystified

Mark Suster of Upfront Ventures joins Nick to discuss Economic Theory in Venture Capital. In this episode, we cover:

  • You’ve written about a major lesson from Clayton Christensen’s book, the Innovator’s Dilemma, which was one of ‘deflationary economics.’ Can describe what this means and why it should be a focus for startups?
  • In light of deflationary economics, what are the key questions that a founder should ask him/herself about the business?
  • Why is it that incumbents have such a hard time responding to startups w/ this approach?
  • What should new market entrants focus on when it comes to price vs. functionality?
  • At a high-level what are your thoughts on the trade-offs between growth and profitability?
  • What are your impressions of what Bryce Roberts is doing at Indie VC?
  • How have your thoughts on investment psychology and economics been influenced by The Black Swan by Nassim Taleb?
  • What other principles of economics, that we haven’t touched on, have informed your investment philosophy?
  • In light of today’s topics, what are the key things you’re looking for in startups?
  • Can you talk about Defy Ventures and your experience visiting California State Prison and the impact that Defy is having?

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.

Direct download: 201_201._REPLAY_Economic_Theory_in_Venture_Capital_Mark_Suster.mp3
Category:general -- posted at: 12:00pm EDT

On this special segment of The Full Ratchet, the following Investors are featured:

  • John Vrionis
  • Bradley Tusk
  • Oren Klaff

Each investor describes the most unusual situation or pitch that they've encountered as an investor.

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.

Direct download: 128_Investor_Stories_128__Strange__Unusual_Vrionis_Tusk_Klaff.mp3
Category:general -- posted at: 12:00pm EDT

Jason Whitney of IU Ventures joins Nick to discuss University-Affiliated Funds & Angel Networks. In this episode, we cover:

  • Backstory/path to venture
  • At IU you have 3 core initiatives - The Quarry, IU Venture Fund and the IU Angel Network. What's the focus of each?
  • Talk about the investment focus for the IU Philanthropic Fund.
  • What're the criteria to be eligible for funding?
  • How does IU Ventures support the University's mission? How does it affect or benefit current students?  
  • As a broader goal, I know the organization ultimately hopes to entice investors and entrepreneurs from around the country to return to Indiana as a result of participating in the network. Are you measuring this and are your efforts working thus far?
  • So, a criticism of both university venture funds and angel groups is speed -- traditional angel groups and academia move slowly with investment decisions.  How do you combat that issue for founders raising on a tight timeline, trying to close a round?
  • I was speaking with a university-affiliated investor just last week and he was saying, there's just not enough deal flow when you restrict investments to companies that have a specific university affiliation... do you agree/disagree?
  • I've heard from a number of the Alumni Ventures Groups in recent years  -- there are folks leading funds and angel groups with alumni from a particular university... are you a part of this effort and what's your impression of the Alumni Ventures Groups?
  • Let's talk more about the IU Angel Network. How do you go about becoming a member? What do you gain access to as a member?
  • Aside from the university affiliation, which is appealing to many, what advantages and points of differentiation does IU Angels have vs. other angel groups?
  • For the founders out there... why should they fight to get IU Ventures and/or IU Angels on their cap table -- how specifically are you driving success beyond that of other investors?
  • Advice for investors?


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.

Direct download: 200_200._University-Affiliated_Funds__Angel_Networks_Jason_Whitney.mp3
Category:general -- posted at: 3:30pm EDT

On this special segment of The Full Ratchet, the following Investors are featured:

  • Craig Wortmann
  • David Horowitz
  • Cyan Banister

Each investor illustrates a critical lesson learned about startup investing and how it's changed their approach.

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.

Direct download: 127_Investor_Stories_127__Lessons_Learned_Wortmann_Horowitz_Banister.mp3
Category:general -- posted at: 12:00pm EDT

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