Month: May 2018

The ‘Softbank Effect’, Financial Discipline and the Interworkings of a Top Seed Investment Firm



Joe Medved of Lerer Hippeau joins Nick to discuss The 'Softbank Effect', Financial Discipline and the Interworkings of a Top Seed Investment Firm. In this episode, we cover:

 

  • The focus at Lerer Hippeau
  • The adoption and integration of the Binary Capital Portfolio
  • Why they dropped ventures from the name
  • Joe's take on the "Softbank Effect" and the challenges and opportunities created by it.
  • how founders should think about raise amount and valuations
  • The effect of late-stage capital on early stage investors
  • The capital strategy mistakes that lead to startup death
  • Joe's take on early-stage investors taking early exits when they are offered liquidity.
  • The strategy for their sixth, $150 million fund
  • How Joe's team approaches sourcing, vetting, diligence
  • LH's focus on outbound vs. inbound
  • Joe mentions a key analysis item that is often overlooked by many investors
  • Lerer Hippeau's portfolio management process: How often they interact and what activities they engage in.
  • The impact of raise amount on outcomes

 

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.

The ‘Softbank Effect’, Financial Discipline and the Interworkings of a Top Seed Investment Firm



Joe Medved of Lerer Hippeau joins Nick to discuss The 'Softbank Effect', Financial Discipline and the Interworkings of a Top Seed Investment Firm. In this episode, we cover:

 

  • The focus at Lerer Hippeau
  • The adoption and integration of the Binary Capital Portfolio
  • Why they dropped ventures from the name
  • Joe's take on the "Softbank Effect" and the challenges and opportunities created by it.
  • how founders should think about raise amount and valuations
  • The effect of late-stage capital on early stage investors
  • The capital strategy mistakes that lead to startup death
  • Joe's take on early-stage investors taking early exits when they are offered liquidity.
  • The strategy for their sixth, $150 million fund
  • How Joe's team approaches sourcing, vetting, diligence
  • LH's focus on outbound vs. inbound
  • Joe mentions a key analysis item that is often overlooked by many investors
  • Lerer Hippeau's portfolio management process: How often they interact and what activities they engage in.
  • The impact of raise amount on outcomes

 

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.

Finding new value in old notes



One of the journals I keep is a Daily Q&A journal, which asks the same question each calendar day every year for five years. It’s a great exercise in seeing what’s changed in your life and what’s not; where I’m moving toward my goals and where I’m stuck.

That ability to better understand the present in context of the past is one of the many things that’s valuable about old notes. I’ve thought for some time that if I was going to start another company right now, it might focus on re-surfacing new value from old notes. I love thinking about how old wisdom or information sheds new light on new circumstances. That’s a phenomenon I’d like to think about a lot more. For now, some specific examples.

Today my daily Q&A journal asks “what was the best thing you read today?”

On this day in 2014, I said it was a Chomsky interview in The Sun. Incidentally, I’m reading a wonderful Chomsky book right now that I got in a Free Library walking down the street. (I live in Portland, there’s Chomsky just laying about here.) Why did it take me four years to get back to reading Chomsky? Because the interview wasn’t that good. The book is great though! It makes me think that a great author shouldn’t be judged from one piece.

On this day in 2015, the most interesting thing I read was my own Evernote file of important thoughts recorded in the month of May. (Read more...)

Why you shouldn’t rely on social feed algorithms alone



“We run the risk, with social news algorithms,” Czech media philosopher Vilém Flusser wrote, “of losing our human capacity to select information, an essential part of making decisions, of being free.” (From the Society of the Query Reader: Reflections on Web Search)

That’s a powerful  way of saying it.  Making decisions is the essence of freedom, and selecting which information to focus on is a particularly important kind of freedom in an information-dense world.  As is the case with so many other forms of freedom, it’s also overwhelming and frightening.  Exercising it is a skill that we (hopefully) build.  (Mortimer Adler defines a skill as “a habit of following a set of rules,” in his great book How to Read a Book (video summary).)

I like to exercise my information freedom through source selection (following specific people, subscribing to RSS feeds), source categorization (making Twitter lists, folders in my RSS reader), reading the most recent updates from those sources, AND appreciating social news algorithms that bring selected updates to the top.  Today I retweeted my wife for the first time in a long time, because Twitter’s “You may have missed” algorithm made sure I saw her post.  I appreciate that.

Flusser’s exploration of the implications of these algorithms goes into more detail.  “For example,” he says, “redundant info isn’t removed, but highlighted, creating pressure to conform.”

If freedom is important to you, looking outside the boundaries of the algorithmic stream is important.

Investor Stories 86: My Investing Strategy (Roberts, Collett, Scevak)



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

-Bryce Roberts -Mike Collett -Niki Scevak   Each investor describes their investment thesis and how they evaluate startups for investment.

 

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 86: My Investing Strategy (Roberts, Collett, Scevak)



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

-Bryce Roberts -Mike Collett -Niki Scevak   Each investor describes their investment thesis and how they evaluate startups for investment.

 

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 85: Why I Passed (Pascucci, Einstein, Kurzweil, Verrill)



On this special segment of The Full Ratchet,

the following investors are featured:

  • Vic Pascucci
  • Ben Einstein
  • Ethan Kurzweil
  • David Verrill

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 85: Why I Passed (Pascucci, Einstein, Kurzweil, Verrill)



On this special segment of The Full Ratchet,

the following investors are featured:

  • Vic Pascucci
  • Ben Einstein
  • Ethan Kurzweil
  • David Verrill

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.