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

Jim Douglass of Fulcrum Equity Partners joins Nick on a special Crisis Coverage installment to discuss Pandemic Effects on B2B SaaS and Healthcare -- Total $ Invested, Multiples, and the Exit Environment. In this episode, we cover:

  • Background/path to venture.
  • The thesis at Fulcrum.
  • Investments since COVID -- Anything additional you need to see or changes to process to get to investment?
    B2B SaaS -- impacts to existing contracts and funnel opportunities thus far?
  • Recently, we had Byron Deeter at Bessemer on the show talking about why this is the seminal moment for Cloud and b2b SaaS companies, do you share that excitement with Byron or where do you stand?
  • Previous downturns have had a deeper and longer term effect on growth stage (volume and dollars) then the earliest stages -  what are your predictions for the near term and mid term on growth stage investing?
  • How do you and your partners think that investment multiples will be affected?
  • What about the exit environment...What have you been seeing in the current exit environment and how do you think it will be impacted over the next 12 months or so?
  • I believe the entire team at Fulcrum has experience as an operator -- How does this impact the way you work w/ portfolio companies?
  • Substantive changes to operating plans?
  • Healthcare Services framework and approach to investing?
  • What actions are you seeing CEOs take and/or what are you encouraging they take in order to maintain operating culture in this distributed work environment?
  • "3 data points"
    • Independent of the COVID situation, let’s say that you are approached by a B2B SaaS company that is currently doing $5M ARR, has a 5:1 LTV/CAC Ratio and MoM growth is trending at 10%
    • Catch is you can only ask for 3 data points to make your decision.
    • What 3 questions and data points do you ask for (can not ask for P&L, Operating Plan, Cohorts, etc... need to be specific data points)?

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