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

Dayna Grayson & Rachel Holt of Construct Capital joins Nick to discuss Competing with Amazon, Combatting 60% Talent Attrition, and Driving Transformation of Foundational Industries. In this episode we cover:

  • Can you each give us the two-minute background and path to VC?
  • What is the thesis at Construct?
  • How do you define series A? 
  • Is there a geographic scope in which you'll invest?
  • Why have you chosen to focus on these sectors and categories?
  • How have you seen the current environment issues affect sales cycles and velocity over the past year?
  • How do you deal with inertia, slow sales cycles, and tech aversion amongst these buyer and user groups?
  • Is there any concern that the skills gap will broaden over time?
  • Will capital intensity, timing of financing rounds, timing to exit, size/scale of exits, valuation multiples, etc. look different for a legacy industry portfolio vs. a standard SV SaaS portfolio?
  • Investment philosophy has shifted from being much more decision-maker focus and top-down startups versus more user bottom-up focus solutions. Is that something that's part of your lens or is it case by case, depending on the startup?
  • There seems to be a lot more VCs/Investors focused in these spaces, so why the need for Construct in this market where so much capital is flowing?
  • What was it like pitching this narrative in the thesis?
  • You raised your inaugural fund during the pandemic — what did you learn from that experience?
  • There are two different philosophies on firm building. One approach is more of an independent/individual sport, the other a team sport. Which do you employ?
  • If one of you wants to do the deal and the other thinks it's not a good way to deploy capital, what happens in that circumstance?
  • How do you think about scaling your efforts and getting more leverage out of your time?
  • What's the post-investment relationship with the founders look like at Construct?
  • What do you know, you need to get better at?
  • What's the best way for listeners to connect with each of you and follow along with Construct?

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The host of The Full Ratchet is Nick Moran, General Partner of New Stack Ventures, a venture capital firm committed to investing in the exceptions.

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Direct download: TFR_Dayna_Grayson_Rachel_Holt.mp3
Category:general -- posted at: 5:00am EDT