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Month: November 2017

149. Startup Moats, Deep Tech & Where Science Fiction becomes Science Fact (Bilal Zuberi)

by Nick Moran

Bilal Zuberi of Lux Capital joins Nick to discuss Startup Moats. In this episode, we cover:

  • An overview of moats
  • Example companies with moats
  • How to build a monopoly from the outset and if Bilal requires in startups he invests in
  • Incremental vs. step-change innovation and the implications on the breadth and depth of the moat
  • The types of moats
  • Bilal's take on data and network effect-based moats using a business model as a moat
  • His thoughts on building brand as a sustainable competitive advantage
  • How NPS score plays a role
  • An example where Bilal thought there was a moat but it proved not to have the defensibility predicted
  • And finally I get Bilal's take on Lux's investment strategy, their portfolio and how they are building value in the water, on the ground, in the air and even up in space

 

To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes.

Also, follow us on twitter  for updates and more information.

149. Startup Moats, Deep Tech & Where Science Fiction becomes Science Fact (Bilal Zuberi)

by Nick Moran

Bilal Zuberi of Lux Capital joins Nick to discuss Startup Moats. In this episode, we cover:

  • An overview of moats
  • Example companies with moats
  • How to build a monopoly from the outset and if Bilal requires in startups he invests in
  • Incremental vs. step-change innovation and the implications on the breadth and depth of the moat
  • The types of moats
  • Bilal's take on data and network effect-based moats using a business model as a moat
  • His thoughts on building brand as a sustainable competitive advantage
  • How NPS score plays a role
  • An example where Bilal thought there was a moat but it proved not to have the defensibility predicted
  • And finally I get Bilal's take on Lux's investment strategy, their portfolio and how they are building value in the water, on the ground, in the air and even up in space

 

To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes.

Also, follow us on twitter  for updates and more information.

American Equity

by Sam Altman
This post is by Sam Altman from Sam Altman

I’d like feedback on the following idea.

I think that every adult US citizen should get an annual share of the US GDP.

I believe that owning something like a share in America would align all of us in making the country as successful as possible—the better the country does, the better everyone does—and give more people a fair shot at achieving the life they want.  And we all work together to create the system that generates so much prosperity.

I believe that a new social contract like what I’m suggesting here—where we agree to a floor and no ceiling—would lead to a huge increase in US prosperity and keep us in the global lead.  Countries that concentrate wealth in a small number of families do worse over the long term—if we don’t take a radical step toward a fair, inclusive system, we will not be the leading country in the world for much longer.  This would harm all Americans more than most realize.

There are historical examples of countries giving out land to citizens (such as the Homestead Acts in the US) as a way to distribute the resources people needed to succeed.  Today, the fundamental input to wealth generation isn’t farmland, but money and ideas—you really do need money to make money.

American Equity would also cushion the transition from the jobs of today to the jobs of tomorrow.  Automation holds the promise of creating more abundance than we ever dreamed possible, but it’s going to significantly change (Read more...)

American Equity

by Sam Altman
This post is by Sam Altman from Sam Altman

I’d like feedback on the following idea.

I think that every adult US citizen should get an annual share of the US GDP.

I believe that owning something like a share in America would align all of us in making the country as successful as possible—the better the country does, the better everyone does—and give more people a fair shot at achieving the life they want.  And we all work together to create the system that generates so much prosperity.

I believe that a new social contract like what I’m suggesting here—where we agree to a floor and no ceiling—would lead to a huge increase in US prosperity and keep us in the global lead.  Countries that concentrate wealth in a small number of families do worse over the long term—if we don’t take a radical step toward a fair, inclusive system, we will not be the leading country in the world for much longer.  This would harm all Americans more than most realize.

There are historical examples of countries giving out land to citizens (such as the Homestead Acts in the US) as a way to distribute the resources people needed to succeed.  Today, the fundamental input to wealth generation isn’t farmland, but money and ideas—you really do need money to make money.

American Equity would also cushion the transition from the jobs of today to the jobs of tomorrow.  Automation holds the promise of creating more abundance than we ever dreamed possible, but it’s going to significantly change (Read more...)

148. New Founders, New Stages, New Offerings– The Only Constant in Venture is Change (Vic Pascucci)

by Nick Moran

Vic Pascucci of Lightbank joins Nick to discuss New Founders, New Stages, New Offerings-- The Only Constant in Venture is Change. In this episode, we cover:

  • Where'd you get your start in venture and how'd your path lead to Lightbank?
  • Can you walk us through the Lightbank backstory... before you joined?
  • What's the current thesis and investment focus for the firm?
  • How active a role do you play with portfolio companies?
  • What, if anything, do you think the team at Lightbank can do a better job of going forward?
  • Do you think your approach is different than Eric and Brad's?
  • Recently spoke w/ Semil Shah about the multiple stages, within seed... pre-seed, seed, inst seed, post seed, seed extension. WTF is going on with the seed round?
  • There's been an explosion of seed funds... do you think this is a problem? Is there a bubble at seed or, w/ the way barriers to startup have come down, is the influx of capital warranted?
  • I'm noticing entrepreneurs moving away from SAFEs and Convertibles... are you seeing the same? If so, why do you think that's the case?
  • How have you seen startup capital raises change over time and do you think it's moving in the right direction?
  • What should every founder be thinking about, during a fundraise, that most often they're not even considering?
  • Are you seeing a difference in the makeup of founding teams and their capabilities? From personal experience, I certainly notice a difference in the style and approach (Read more...)

148. New Founders, New Stages, New Offerings– The Only Constant in Venture is Change (Vic Pascucci)

by Nick Moran

Vic Pascucci of Lightbank joins Nick to discuss New Founders, New Stages, New Offerings-- The Only Constant in Venture is Change. In this episode, we cover:

  • Where'd you get your start in venture and how'd your path lead to Lightbank?
  • Can you walk us through the Lightbank backstory... before you joined?
  • What's the current thesis and investment focus for the firm?
  • How active a role do you play with portfolio companies?
  • What, if anything, do you think the team at Lightbank can do a better job of going forward?
  • Do you think your approach is different than Eric and Brad's?
  • Recently spoke w/ Semil Shah about the multiple stages, within seed... pre-seed, seed, inst seed, post seed, seed extension. WTF is going on with the seed round?
  • There's been an explosion of seed funds... do you think this is a problem? Is there a bubble at seed or, w/ the way barriers to startup have come down, is the influx of capital warranted?
  • I'm noticing entrepreneurs moving away from SAFEs and Convertibles... are you seeing the same? If so, why do you think that's the case?
  • How have you seen startup capital raises change over time and do you think it's moving in the right direction?
  • What should every founder be thinking about, during a fundraise, that most often they're not even considering?
  • Are you seeing a difference in the makeup of founding teams and their capabilities? From personal experience, I certainly notice a difference in the style and approach (Read more...)

Investor Stories 73: Why I Passed (Draper, Farmer, Suster)

by Nick Moran

On this special segment of The Full Ratchet, the following Investors are featured:

  • Adam Draper
  • Chris Farmer
  • Mark Suster

Each investor highlights a situation where

they decided not to invest, why they passed,

and how it played out.

 

To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes.

Also, follow us on twitter  for updates and more information.

Investor Stories 73: Why I Passed (Draper, Farmer, Suster)

by Nick Moran

On this special segment of The Full Ratchet, the following Investors are featured:

  • Adam Draper
  • Chris Farmer
  • Mark Suster

Each investor highlights a situation where

they decided not to invest, why they passed,

and how it played out.

 

To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes.

Also, follow us on twitter  for updates and more information.

Meet The VC Who’s Betting On A Better World In 3D: Gilman Louie

by Alsop Louie Partners

by Giovanni Rodriguez
Originally published in Forbes. Reprinted with permission from the author.

On a bright weekday morning last Spring, I found myself stranded outside a small, non-descript building on Howard Street in San Francisco, desperately trying to figure out how to get in. I got the address right, according to Google Maps. But there was no sign on the building, and no obvious way to enter. Three thoughts/feelings occurred to me. One, an easier portal into the space would have been welcome. Second, the experience felt like a test. Third — and perhaps the most persistent sentiment, because I feel it to this day — it was actually an appropriate experience because of the people inside that building.

Perhaps it was a test. The people inside that building were Stewart Alsop and Gilman Louie, founders of the fast emerging VC firm Alsop Louie Partners (one of their first big scores: Twitch, which sold for almost $1 billion in 2014; more about that at the end of the article). It’s a special firm. I knew Stewart from a startup he invested in more than 10 years ago, and recently met up with him to check out one of his most recent investments, a startup called Hover which enables contractors to use a smartphone to create an accurate 3D model of a home and which they can later use to spec, price, and do work on the home. After the meeting, Stewart and I chatted briefly. I was impressed, I said. (Read more...)

Meet The VC Who’s Betting On A Better World In 3D: Gilman Louie

by Meredith MacNeill

by Giovanni Rodriguez
Originally published in Forbes. Reprinted with permission from the author.

On a bright weekday morning last Spring, I found myself stranded outside a small, non-descript building on Howard Street in San Francisco, desperately trying to figure out how to get in. I got the address right, according to Google Maps. But there was no sign on the building, and no obvious way to enter. Three thoughts/feelings occurred to me. One, an easier portal into the space would have been welcome. Second, the experience felt like a test. Third — and perhaps the most persistent sentiment, because I feel it to this day — it was actually an appropriate experience because of the people inside that building.

Perhaps it was a test. The people inside that building were Stewart Alsop and Gilman Louie, founders of the fast emerging VC firm Alsop Louie Partners (one of their first big scores: Twitch, which sold for almost $1 billion in 2014; more about that at the end of the article). It’s a special firm. I knew Stewart from a startup he invested in more than 10 years ago, and recently met up with him to check out one of his most recent investments, a startup called Hover which enables contractors to use a smartphone to create an accurate 3D model of a home and which they can later use to spec, price, and do work on the home. After the meeting, Stewart and I chatted briefly. I was impressed, I said. (Read more...)