The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified Investor Stories 461: Feast and Famine in Crypto, When to Take the Off Ramp, and Evaluating Founder Temperament (Simpson, Chaddha, Orthlieb)
Feb 23, 2026
Arianna Simpson, crypto investor at Andreessen Horowitz who advises founders on burn and boom-bust cycles, and Navin Chaddha, Mayfield partner known for founder-first, early-stage investing. They talk about feast-and-famine fundraising in crypto. They discuss when to push for an off-ramp versus backing a founder’s choice. They explore assessing founder temperament and hard conversations about runway.
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Feast And Famine Drives Crypto Burn Risk
- Crypto markets swing between feast and famine, forcing founders to manage extremes in hiring and spending.
- Arianna Simpson says 2021 era hiring/spend binges were followed by fundraising droughts, so discipline over cycles is critical.
Treat Investors As Teammates And Heed Burn Feedback
- Do treat your investors as teammates and act on their burn-management feedback early.
- Arianna emphasizes that investors want companies to hit milestones so they can raise the next round, so heed early course corrections.
Missed Off-Ramp During COVID Bubble
- Navin Chaddha recounts backing an entrepreneur who refused an early off-ramp during the COVID-era valuation bubble.
- He supported the founder, missed a potential 5–10x earlier exit, and later watched multiples compress despite 4x growth.