Investor Stories 335: Why I Passed (Schwerin, Keidan, Beller)

Investor Stories 335: Why I Passed (Schwerin, Keidan, Beller)


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

  • Jules Schwerin
  • Jon Keidan
  • Morgan Beller

Each investor highlights a situation where they decided not to invest, why they passed, and how it played out.

The hosts of The Full Ratchet are Nick Moran and Nate Pierotti of New Stack Ventures, a venture capital firm committed to investing in founders outside of the Bay Area.

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Transcribed with AI:

0:18
Welcome back to TFR on today’s special segment, we ask guests to discuss their anti portfolio startup investment that they passed on. Here’s the segment called Why I passed.

0:35
Today’s special guests is Jules Twaron, of RTP. Global Jules, can

0:39
you tell us a story about a startup that you pass on whether there’s a good or a bad pass? Yeah, so there was a company that I I actually went to visit in a different country a few years back. We love the team absolutely love the mission. Everything just clicked and the stars aligned. I brought it back to our Investment Committee. It just didn’t work for a whole host of reasons. It just got like slapped down out of the room. And we ended up doing nothing. It was a regrettable pass. But they’re now several billion dollar company at the time, I think that it was like a 40 or 60 million pre. But just it was one of those rare opportunities that you just really clicked with the team. I understood exactly how they thought they all gelled incredibly well together. They were absolute experts in our market. It’s like a SEAL team, six of their market. And yeah, it’s it for a host of reasons didn’t end up working out. But we’ve all got a couple that have gotten way. I’ll try to keep the names out of it. But yeah,

1:39
yeah. Sorry to hear that. It happens though. Yeah.

1:49
On today’s special segment, we have John Keaton of torch capital. John, can you tell us a story about a startup that you pass on? While there was a good or a bad pass?

1:59
Well, the one always comes to mind first, and as a seed investor is still a very successful investment, even though it didn’t Well, the public do that. Well, the public markets is all birds. And I saw it the very first round. And I had done some other consumer. And the basic assumption was the shoes are ugly. So why would I do that? I mean, it’s just the product to me didn’t speak to me, clearly with clearly was wrong, because it’s still even though you know, a company that’s worth hundreds of millions of dollars. And we were investing prior to five or $6 million valuation but, but that always sticks with me, because I was just like, there’s no analysis or laying, I was like, Yeah, I don’t, I wouldn’t wear those. So you know, there’s one that’s kind of funny, there have been a bunch, you know, tour, there’s a ton of tours, we always we always think about this a lot. But But I mean, the ones that are most memorable, or in my angel days pros, the customizable shampoo and conditioner, french french team, really smart, I met both of them, they sent me product. And I just wasn’t sure how scalable it was. And if they could do that, you know, the Create option to do customizable shampoos at scale. I was totally wrong. I’ve done phenomenally. So one of the founders had an event the other night congratulated him. Yeah, there were a bunch. So you’re always, you know, the trick, the excitement. And the hard part of early stage is really just have to believe in a vision. And you ask to speak to you. And that’s where it really parallels in the music business. Same thing would you find in our music artists, and you can get that wrong, you can easily get that wrong. Yeah,

3:24
happens.

3:31
On today’s special segment, we have Morgan Beller of NSX, Morgan tells a story about a startup that you pass on a good or a bad pass.

3:40
So this one is fresh. And I hope they don’t get mad at me. And it’s unclear if it was a pass but a little bit slow. But ultimately, we didn’t end up doing the deal, which might not have been our choice, but it’s a company called superpower. And they’re trying to lower the bar to concierge medicine. That’s how I describe it, they might ascribe it differently. And I absolutely love the team love the product want to use it. We got stuck asking ourselves a lot of questions around kind of like the employer health benefit market, which is something that we have scars from at as a firm with past companies and it’s one that I still think about, even though we ultimately didn’t do it. Hope it ends up being for us and good for them because I’m rooting for them. So, of course, of course.

4:31
That will conclude this installment of investor stories. If you’re enjoying the program and would like to see it continue. Take a moment and leave a five star review in iTunes. Okay, that will wrap things up for today. Until next time, over prepare, choose carefully and invest confidently thanks for joining me