201. [REPLAY] Economic Theory in Venture Capital (Mark Suster)
This post is by Nick Moran from The Full Ratchet: VC | Venture Capital | Angel Investors | Startup Investing | Fundraising | Crowdfunding | Pitch | Private Equity | Business Loans
Mark Suster of Upfront Ventures joins Nick to discuss Economic Theory in Venture Capital. In this episode, we cover:
- You’ve written about a major lesson from Clayton Christensen’s book, the Innovator’s Dilemma, which was one of ‘deflationary economics.’ Can describe what this means and why it should be a focus for startups?
- In light of deflationary economics, what are the key questions that a founder should ask him/herself about the business?
- Why is it that incumbents have such a hard time responding to startups w/ this approach?
- What should new market entrants focus on when it comes to price vs. functionality?
- At a high-level what are your thoughts on the trade-offs between growth and profitability?
- What are your impressions of what Bryce Roberts is doing at Indie VC?
- How have your thoughts on investment psychology and economics been influenced by The Black Swan by Nassim Taleb?
- What other principles of economics, that we haven’t touched on, have informed your investment philosophy?
- In light of today’s topics, what are the key things you’re looking for in startups?
- Can you talk about Defy Ventures and your experience visiting California State Prison and the impact that Defy is having?
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