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

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