Investor Stories 336: Key Advice (Sigalow, Lynn, Tully)

Investor Stories 336: Key Advice (Sigalow, Lynn, Tully)

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

  • Ian Sigalow
  • Rebecca Lynn
  • Tim Tully

We asked guests for the most important piece of advice that they’d share with folks early in their venture career.

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.

Want to keep up to date with The Full Ratchet? Follow us on social.

You can learn more about New Stack Ventures by visiting our LinkedIn and Twitter.

Are you a founder looking for your next investor? Visit our free tool VC-Rank and weโ€™ll send a list of potential investors right to your inbox!

Transcribed with AI:

Welcome back to TFR. On today’s special segment, we asked guests for the most important piece of advice that they share with folks early in their venture career. Here’s the segment called key advice.

On today’s special segment, we have Ian sigillo, co founder and Managing Partner of gray Croft, Ian, what piece of advice would you give to an emerging investor today, someone who is only a few years into their investing career,

find good mentors, be probably number one, don’t compromise on like a standard of excellence would be number two. And specifically by that, I mean, generally speaking, many people will invest in a company that they don’t love. But they may like the deal. Or they may like something about it. But if you really test like can this be a big public independent business that, you know, 50 years from now and you’re in your 70s, that you’ll be telling your grandchildren that you did this company and it changed the world? They’re most like, no, like, I did this because I liked this thing. And this was cool about it, I think, telling people to aspire for that. Because if over the course of two decades, you only did three investments. But all three of them were legendary companies, your life is so much easier than if you did 50. And you’re chasing those companies around and they’re all small and uninteresting businesses that get gobbled up and trade sales or don’t work. So they just keep a high bar.

Today’s special guest is Rebecca Lynn of Canvas ventures.

Rebecca, if you could share one piece of advice with a young new investor, what would you tell them?

One piece of advice for a young new investor? You know, what I was told early on, was the best way to get out of venture capital quickly as do a bunch of deals really fast. So I think that’s true. I think that the best piece of advice is go slow. Go slow. And and also don’t I hear too many young investors say, Oh, this company is so cool. It scaled zero to 5 million and this and I’m like, Okay, fine. But what’s the product? Like? What’s the pain point? What are they solving for? Right? Because there’s a lot of companies that can scale zero to five, zero to 10 million, and they cap out they’re truly not transformative. Industry changing companies, right. And sometimes those really transformative, industry changing life changing companies take a while to realize their revenue, it takes a while to build that product, right? And so I think my advice is, don’t think small ball, right? You think big. And and don’t play, you’re you’re not playing for doubles and triples you’re playing for returning your fund. And if that company that you’re talking to, you don’t think you can actually return your entire fund, you should do something else, right. And the thing is, it’s not going to be entirely obvious. At the beginning, when you’re you have to be able to see a vision where if the stars lined up, it could be a multiple billion dollar company, right? And I too often I see invest, like young investors, like oh, well, yeah, we can we could sell it. if things didn’t work out. We can do this with the company. Well, that’s just a note to not invest. Because you’re not playing for downside. You’re only playing for upside. Yeah.

On today’s special segment, we have Tim Tolley of Menlo Ventures, Tim, if you can share one piece of advice with a young new investor, what would you tell them?

I think it’s, you’re gonna hear a lot about time management and such. And I know probably someone that I work with more senior than me is gonna come back to me like don’t Why do you say all these things but like, you always get this advice, like, you know, manage your time smartly, you’re going to be on a lot of boards, and some be hard to take all the meetings, I think like, what helped me the most was taking a lot of meetings, like taking a lot of meetings helped me get more at bats, and start to build my neural net. Like there, you know, our brain is just a giant neuron or series of neural nets anyways, but like, I didn’t have one train for a venture because I’ve been an operator for my my whole life. And I think meeting just a ton of companies early on, and just seeing the variety and what greatness, you know, could be or what it could look like, has really helped me a lot. So take as many meetings as you can, despite what people might, might tell you otherwise. And I think get to find really great investors, either ones that you work with at your own firm, or even outside hopefully if they’re willing to spend time Have you like, go meet Peter Wagner. Like, that’d be a great example like that dude’s been doing it for probably close to three decades or something. And like he’s seen a lot and had a lot of great success and is, you know, got a ton of experience and is really friendly. And no, I think for the most part, willing to help. And you can learn a lot from these folks just because they’ve been doing it longer. Maybe the other piece of advice is marry another VC like I did. Kind of like learn from, you know, talking about it at dinner. That certainly helped me a lot. I’ll have to be honest there. She taught me a ton. But I think it’s the app that’s really right, take the meetings meet a lot of people network heavily go to the events, like be willing to spend the time the events help, right? It’s

it’s pretty helpful industry in general, right? Not everyone responds, but like if you ask the right questions, often people will help. Does that mean you’re gonna help me? I don’t know if I can help you very much, Tim. Sounds like you’ve got the you got the the edge in in a variety of categories, but I might call on you. Man,

I’m happy to help like you said.

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