118. Economic Theory in Venture Capital, Part 1 (Mark Suster)

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Mark Suster of Upfront Ventures joins Nick to cover Economic Theory in Venture Capital, Part 1. We will address questions including:

  • 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?

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