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

On this special segment of The Full Ratchet, the following Investors are featured: Leah Solivan Oren Klaff Jason Whitney Darren Bechtel 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.

Ramy Adeeb of 1984 Ventures joins Nick on a special Crisis Coverage installment to discuss Why Facebook Should be Broken Up; SV Hype vs Returns; Amara's Law; and VC's Track Record Predicting Trends. In this episode, we cover: Backstory/Path to Venture Tell us more about what was it like working with Vinod. Is there anything he taught you in specific that was most influential? And how about Pierre? How has the crisis impacted the way you invest as well as your thesis? Have you seen an adjustment, a correction or a slow down amongst the Series B, C and growth stage investors? Any predictions on how long this period will last? What are some tips for founders when pitching to VC's over zoom? Quick highlights of your thesis (stage, sectors, geos, check sizes, etc.) You've said that one should "Avoid the hype - whatever is en vogue you should run away from" why should the hot trends be avoided? What's Amara's Law and how does that inform your thesis? Any stats or data on VCs ability to predict the future? Let's say someone describes one of your investments as feeling more like a product and not a company... how do you respond? You've mentioned your focus on passing quickly... What are your tips and tricks to get to a quick pass? You've said that Facebook is a monopoly and should be broken up... why? In your estimation, what's the most significant adverse effect from WeWork and The Vision Fund that no one's talking about? Tech is often credited for creating significant value but some also argue that it destroys jobs and widens the wealth gap. What's your take on this and how, someone like Bernie Sanders, in office could affect venture? When it comes to the economy and the effect of tech on the economy, we've seen unemployment fall to an all-time low while the # of people 'not working' is at an all time high... Are we measuring the right economic indicators when it comes to unemployment and also inflation? I also came across something you tweeted about Tech Pessimism. You quoted: "We too often focus on the drawbacks of a new tech while taking its benefits for granted." Meanwhile "To be Alive in the tech obsessed 2020 is to be among the luckiest people who have ever lived." Can you give us some examples of Tech Pessimism and your take on it? Do you think there's a resolution? 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.

David Rabie of Tovala joins Nick on a special Crisis Coverage installment to discuss Finding PMF, Raising Series B, & Navigating a Startup Amidst the Pandemic. In this episode, we cover: I was just checking and we had you on the show back in March of 2016... that was over 4 years ago, pre-launch, during your Kickstarter campaign. So crazy how much time has passed. Can you refresh us on the origin story of Tovala... We've invested in the pre-seed, seed, Series A and now Series B round... and we're fortunate to have a front row seat while you and the team built an amazing company but bring the audience up-to-speed on the last few years... what have been the key milestones/inflection points? Your revenue was strong, hovering near mid seven figures ARR, until Q3 2019 when it took off at a growth rate like I've never seen... accelerating past $10M ARR and continue a rapid growth rate, even during the crisis. What changed that caused the ramp? How do you define PMF and when did you know you reached it? What tech companies do you compare yourself to and how do you measure up? North Star Metrics? LTV, Payback, Yearly Spend, Retention? Overall, how has the crisis affected your business? What are the major levers/measures you've taken to reduce cost? Talk to us about raising the B round -- and How it was trying to raise as the pandemic hit? Let's talk about what's next for Tovala... On the oven side of the business... currently consumers have to purchase your smart steam oven -- a countertop device similar to a toaster oven. What does the future look like on the hardware side and is the Tovala countertop steam oven always going to be necessary to enjoy Tovala food? And the food itself... what are some options available to expand meal kits available beyond just Tovala's kitchen? Any other strategic partnerships or growth channels that are high priority opportunities for you after closing the B round? Greek chicken and vegetable pita... Any plans for breakfast or lunch? From my family members... When are you going to have a pizza or a hamburger? How would you describe your leadership style and the culture you've established at Tovala? What advice would you have for founders building a D2C tech company? 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: Grace Isford Somesh Dash Steve Blank Mark Suster 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.

Taranvir Johal & Salman Elmi of Tavolo and Top Figure join Nick to discuss Racism in Venture -- A White, Male VC Threatens Black & Brown Founders. In this episode, we cover: Quick personal backstory and origin story for Tavolo -- Taranvir. Quick personal backstory and origin story for Top Figure -- Salman. So, there was an incident last week in Minneapolis where venture capitalist, Tom Austin (who has since been fired by F2 Group), confronted you in your building's exercise room. You guys captured a video of the incident and it begins with w/ Mr. Austin pointing his mobile phone camera back and forth at the three members of your team -- as he confronted you. Walk us through what happened before and after the video recording. Very, very reminiscent of the Amy Cooper video from NYC's Central Park -- shocking similarities between your situation and the Cooper situation. It's nothing short of tragic. What were you feeling as this was happening to you? What has it been like growing up in a society that is not structured to promote your success? Tell us about your experience as black and brown founders in the startup world? How does what happened change the way you go about business in the future? Thoughts on the murder of George Floyd and impact on the black community? What are some of the changes you'd like to see most from a systemic point of view? What do you think are some actionable steps investors and founders can take to respond to what's been going on? 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.

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)? 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: John Vrionis Elizabeth Yin Bobby Franklin Jeremy Neilson 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.

Melody Koh of Nextview Ventures joins Nick on a special Crisis Coverage installment to discuss Super-Technologies; The Everyday Economy; The Overlooked Working Class; and Fear of Missing Out vs. Fear of Looking Dumb. In this episode, we cover: Background and path to venture Thesis and Focus at NextView Hands-on approach (only 2-3 investments/yr)? You wrote that when it comes to investing in the COVID era -- FOMO (Fear Of Missing Out) is replaced by FOLD (Fear Of Looking Dumb). What are you seeing from other investors? How will this effect 'Seed' as a Stage of investing? How has the crisis effected your approach? Conviction without face to face? Recently heard about NextView's new virtual Accelerator... congrats on the launch. Can you give us a quick overview of the program? Do you have any predictions on the long-term effects of this crisis on the 'Everyday Economy'? I saw your tweet about companies shifting the real estate burden to employees as everyone works from home... do you think companies should subsidize this? Super-Technologies... railroads, electricity, automobiles, and now internet connectivity. Ideas about what may be some of the next infrastructure type super-technology? Why do you think the working class has been overlooked as an opportunity for innovation? You cite labor as an opportunity ready for innovation. Why is now the time for innovation here? You point out a really interesting observation -- that this demographic is more likely to use smartphones as their daily driver and that they tend to skew towards older devices. What does that mean for new tech products? Are there examples of tech companies that have successfully built a company designed for this category of workers? What are the key success factors or key criteria for success, when launching technologies for the working class? Which working class industries do you think are in the best position for change? 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.

Jeff Fluhr of Craft Ventures joins Nick on a special Crisis Coverage installment to discuss Launching StubHub During the Dotcom Crash; Why Market Need Trumps Market Timing; Choosing B2B vs. B2C; and Why Founders Shouldn't Let VCs Decide Their Fate In this episode, we cover: Background and path to venture Thesis and focus at Craft So, you incorporated Stubhub in March 2000... just weeks before the dotcom bubble burst. Was there any hesitation or second thoughts as the tech world was collapsing around you? LESSON 1: IT'S ABOUT THE MARKET NEED, NOT THE MARKET TIMING You talk about the difference between market need and market timing. Can you explain what you mean by this point? How did you validate the market need, beyond just the experience of you and others you knew? LESSON 2: BE FLEXIBLE IN YOUR STRATEGY Often founders face this question of choosing B2B vs. B2C... can you talk us through the early days and StubHub and the how the strategy evolved? Do you think if you initially focused on the B2C segment when the crash just happened, results would've been different? What metrics were you optimizing for in the early days. While there were some successful marketplaces, like eBay, the playbook and range of metrics, I'm sure, were much less known and developed in the early 2000s vs. the resources we have to leverage today. LESSON 3: VCs DON'T DECIDE YOUR FATE Tell us about the Series A Raise -- did it go smoothly? When did you shift the model and begin engaging more B2B channels? Was that post-Series A, B? What guidance do you have for founders re. focusing on one and when to expand? What was it, do you think, that kept all the VCs from investing? LESSON 4 : DEPRESSION-ERA VALUES CAN BUILD A STRONG CULTURE What were the three values that were core to your DNA and culture -- that helped you survive and ultimately thrive? Has this shaped the way you evaluate companies, pre COVID and during? LESSON 5 : MANY THINGS ACTUALLY GET EASIER In what ways is it easier to build during a recession? If you were building another company right now, what's one major thing you'd do differently? 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: Ryan Gembala Jenny Rooke Jeff Clavier Courtney Reum Each investor discusses sectors, drivers and/or trends that may have 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.