The Full Ratchet: Venture Capital Demystified

Alex Osterwalder of Strategyzer joins Nick to discuss The Ultimate Testing Framework. In this episode, we cover:

  • Take me back and talk through the origin of the business model canvas?
  • Just to refresh listeners can you provide a high-level overview of the business model canvas and how it's used?
  • Let's chat about your new book, Testing Business Ideas, co-authored with David J. Bland... Why'd you right the book?
  • Who is the target audience?
  • If I'm the reader, what outcome can I achieve after reading this book and applying it's principles?
  • What are the four phases outlined in the book?
  • Walk us through the objective and key elements of the testing phase.
  • A significant focus is the elimination of risks?  How does one systematically reduce or remove risks from their business?
  • We recently had Leo Polovets on the program and discussed the challenge of balancing testing with executing.  I think it can be difficult to know when something is working well enough that you should stop testing and move forward quickly in that direction.  What's your guidance here?
  • How does one avoid getting too caught up in rigid frameworks and checking boxes vs. finding that key insight that warrants 90+% of their attention?

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: 206_206._The_Ultimate_Testing_Framework_Alex_Osterwalder.mp3
Category:general -- posted at: 6:00am EST

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

  • Scott Dorsey
  • Jeff Clavier
  • John Fein

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: 132_Investor_Stories_132__Lessons_Learned_Dorsey_Clavier_Fein.mp3
Category:general -- posted at: 5:00am EST

Jason Calacanis joins Nick to discuss Unicorn vs Pegasus, The Softbank Effect, & Impacts of a Recession on VC. In this episode, we cover:

  • Last time we had you on the show was July 2017. What big things have happened over the past (almost) three years with yourself and Launch?
  • Last time you talked a bit about the "Goldilocks zone"... sort of that post-seed, pre-A round. Is that still the stage getting most focus from you?
  • I read an article where you suggested that SoftBank is changing the way Silicon Valley thinks about going public.
  • What are the biggest positive effects you've seen from the Vision Fund?
  • What about negatives and adverse effects?
  • The volume of startups seems to be ever increasing... Any advice for founders on how to stand out?
  • Lots of people talking about an upcoming recession in 2020. If a recession were to hit, what happens to venture? How do you think it could potentially impact startups as well as investors or VCs?
  • How does your investment strategy change in a recession?
  • Anything founders should should do to prepare for a correction?
  • As part of the fallout from WeWork... I've been hearing a lot of VCs talk about a shift from growth at all costs to a focus on profitability. Are these empty words or are you seeing a material change amongst VCs?
  • Want to get your input on investment and selection...
  • First off, in the book, if memory serves, you suggest angels should focus exclusively on SF-based startups and founders should relocate to SF. We recently committed to a Launch Accelerator company that is not in SF, they're in Chicago. Have your thoughts changed on location?
  • What is a unique requirement or heuristic you use that you don't think other investors consider?
  • What are your biggest red flags or dealbreakers?
  • What are some acceptable risks or issues vs. what's not acceptable?
  • I notice you talking about Pegasus startups (vs. Unicorns). What the heck is a Pegasus?
  • What tips do you have for founders to reach the Unicorn as well as Pegasus status?
  • You also talk about the “Dark Pegasus” can you give us some insight into what that entails and how to avoid these startups 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.


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

  • Scott Kupor
  • Michael Cardamone
  • M.G. Siegler

Each investor discusses sectors, drivers and/or trends that may have a significant impact in the future and are potentially positioned for outsized-returns.

 

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: 131_Investor_Stories_131__Whats_Next_Kupor_Cardamone_Siegler.mp3
Category:general -- posted at: 6:00am EST

Minnie Ingersoll of TenOneTen Ventures joins Nick to discuss Embracing Failure, Capitalizing on Crisis & Building Resilience. In this episode, we cover:

  • Backstory/path to Venture
  • You co-founded Shift, which you scaled to $100M. What was the most unexpected/surprising aspect of leading and scaling a venture-backed startup?
  • Where did you spend most of your time (and mindshare) at A vs. B vs. C/D?
  • What was it like building a venture-backed startup as a woman?
  • Tell us a bit about the thesis at TenOneTen.
  • I was recently speaking with M.G. Siegler about the societal impacts of tech... all of which are not positive.  I know you're a mother, so this probably takes on new meaning for you... but how to you consider social and societal responsibility in your role as a tech investor?
  • You've experienced early struggles in your life that have informed your approach as an investor and founder.  Can you talk about what you've been through, the impact and the perspective you've gained from it?
  • Is failure acceptable?  As an investor failure makes me really uneasy and I've not had to deal with this yet with a portfolio company but I'm sure it's just a matter of time.  What's your stance on failure and how to speak with founders about it?
  • You've spoken about the importance of founder resilience... Is it something you select for in investments or something you work on with existing portco founders... trying to help them build resilience?
  • How are the challenges for women similar different as a founder vs. investor?
  • Favorite Podcast guest?
  • Best/favorite low profile investor in LA?

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:

  • Jim Kim
  • Courtney Reum
  • Aydin Senkut

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.

Direct download: 130_Investor_Stories_130__Why_I_Passed_Kim_Reum_Senkut.mp3
Category:general -- posted at: 12:00pm EST

Leo Polovets of Susa Ventures joins Nick to discuss Raising Fund III, A Framework to De-risk Your Startup, & When to Explore vs. Exploit. In this episode, we cover:

  • Give us an update on your investments at Susa since we last chatted?
  • How has the thesis at Susa evolved over the past couple of years?
  • Do each of the GPs at Susa have specialty areas of focus?
  • This year Susa closed on 2 new funds - Susa III a $90M early stage fund, along with your first opportunity fund to which investors committed $50M. What was the elevator pitch to LPs and what worked well in the first two funds that resonated with LPs, leading to the successful raise?
  • What would you have done differently in Fund I and Fund II if you could go back?
  • What it takes to raise a Series A... often founders will have a singular focus on the vanity metrics -- they assume if they hit $2M in ARR they'll attract the A round at an attractive multiple from Tier 1 investors. But, we've seen this play out and it's not all that's required. Why is a singular focus on ARR a poor approach to raising money?
  • Leo, you have an original framework here focused on de-risking the the major risks centers facing a startup. What are the high-level principles?
  • The 9 risk centers that you've identified include Product Market Fit, Product Quality, Team, Recruiting, Sales, Market, Funding, Short-term Competition, and Long-term Competition -- can you pick one of these areas and walk us through an example?
  • What are the common mistakes founding teams make with regard to these risks?
  • Talk a bit about the balance between testing and execution? 
  • How should founders balance figuring out the best path forward with running fast in the direction they think is best?
  • Increasingly our founders have been sending us dealflow, operating as scouts, making angel investments in early stage companies. Where do you stand on this -- distraction that should be avoided or net benefit to those involved?
  • In what ways have you changed most as an investor since the early days?
  • One piece of advice for founders -- what is it?

 

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:

  • Adeyemi Ajao
  • Ash Rust
  • SC Moatti

Each investor discusses a portfolio company that did not survive and why it was that they failed.

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: 129_Investor_Stories_129__Post_Mortems_Ajao_Rust_Moatti.mp3
Category:general -- posted at: 12:00pm EST

Welcome back to TFR for another Cram Session. In these special releases, we have aggregated the takeaways and tips from previous episodes. In this installment, we will be recapping the following episodes:

 

 

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: 202_202._Cram_Session_Episodes_138-143_Nick_Moran.mp3
Category:general -- posted at: 12:00pm EST

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