Investor Stories 344: Best LP Question (Kaiser, Jones, Jain)

Investor Stories 344: Best LP Question (Kaiser, Jones, Jain)


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

  • Joe Kaiser
  • Michael Jones
  • Gaurav Jain

We asked guests to share the best question they’ve ever been asked by an allocator.

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 share the best question they’ve ever been asked by an allocator. Here’s the segment called Best LP question.

0:36
On today’s special segment, we have Joe Kaiser of Mercado partners. Joe, what’s the best question that

0:42
NLP is asked you? I’ve got to I’ve got to two of my two of my favourite LPs. First Kevin King at Nationwide one of my favourite LPS he and I spent a lot of time ribbing each other what’s little known about Kevin as he is an aspiring professional pickleball player. But but you know, the question that Kevin asks that really resonates with me, is is really oriented around the process of, of how a deal moves through our IC and if you think about our business, what what it consequential question and and consequential decision making process is do just is it just kind of a hand waving exercise? And you know, if Joe’s got a deal, he just tells his partners I love this and they just stamp it definitely not the Mercado away? Or is it? Do you have gridlock and everyone’s deals the best deal and yours is not as good as mine and nothing gets through? And that’s also not the Mercado way. But I think that is that his question and how Kevin asks his questions really gets to the heart of the matter. Another another instance though, another LP that I just love to spend time with. His name is Chris shelling. Chris is one of the great private equity thinkers in the market today. Is that a truly exceptional money management firm now called Caprock. The first time I met Chris, I read a lot of his postings on social media about how he thinks about private equity and GPS and all the things that GPS do wrong. And I was I did like I spent time with Steve Schwarzman and I was still intimidated. The first time I sat down with with Chris and Charlie after this my first meeting with Chris he’s he sends me an email and he says, hey, I want you to take this quiz. Take a quiz. What the hell is this? So Chris sends me this quiz. And the first I felt like I was sitting down for the GMAT again, the first part was just a math test. Like, is there something that I’m missing? Like he’s too smart to be asking me algebra questions, but take it and then the second one was, the second half was a bit of a personality test. And it’s not unlike the GMAT, you don’t get your score back immediately. And so here I am, I’m like, needles on desk, or Neil nails on desk for four weeks waiting to catch up with Chris about, did I flunk his test? Like what part of my personality like did my parents raised me wrong? And now I’m not going to be a good investor. Lo and behold, he said, Yeah, your math scores are right where they should be. And contrary to what my partners may believe my math scores are right where they should be. And on the personality side, thankfully, I’m not an Axe Murderer, and that came through these tests. So that was definitely a unique question as Siri can download. Important thing to screen for them making sure that you’re not an Axe Murderer.

3:40
On today’s special segment, we have Mike Jones of science, Mike, what is the best question an LP has asked you.

3:49
I mean, I’ve had LPS go super deep tactically with us that I really appreciate when they’re kind of really questioning, you know, the way certain companies are growing or how they’re thinking about it. So I like to go deep within sectors, I like to also talk really heavily about how we all think the consumer mindsets changing. That’s obviously big theory for us. And so I like it when they ask us questions. And I like it when they share how they think it’s changing, like we all have. We’re all living in this world. We’re all consumers of these products and services. You know, I think it’s super relevant to hear how people feel about it personally, how their family feels about it, how their peer group feels about it. And that might change the way we think about it. So I’m always looking for knowledge where they’re not only asking us about our thesis, but also how they’re sharing their experiences around it to

4:38
on today’s special segment, we have Gaurav Jain of a for capital growth. What’s the best question that NLP is asked you? There’s one question but I’d say like the one. One thing we really like about LPs are when they’re not just asking you questions, frankly, but giving you feedback, right? Because and I applied the same kind of methodology when I’m being found Hackers, right? Of course, I want to ask questions because I want to learn about their business and their backgrounds. But I try to also add some value in that meeting, because I’ve got a certain vantage point that the founders don’t have. Right. And similarly, LPs have a certain vantage point that we don’t have, right. And we were very lucky to partner with institutional investors. Right? From day one, we’ve been doing venture for far longer than we have, right, who’d seen many more cycles than we had, we’d seen venture across all kinds of stages, and so on and so forth. And they pushed us actually, one of them pushed a lot in Portfolio structure, for example, right? Because we went in thinking, Oh, we’re going to do 60 precedes because it’s highly risky. And then we’re going to double down on seeds. And like, something really pushed us on, like, no ownership really matters, or make sure you have a rainy day fund. Because yes, right now, things are great. And turns out different, right, you know, sizzurp doesn’t last forever, you know, but we’d only see a certain, you know, certain cycles. So I think, you know, LPs that are willing to share their perspective helps you identify blind spots in your business, and, and help push your thinking through. And that’s sometimes we really enjoyed the fundraising process as much as taxing it is sort of just being out there and sharing our story, getting feedback actually helps us run our business better. Right. And I think that to us, we feel like we get value even in cases where data passing we still get value out of that conversation. Yeah, so I’m very similar to the founders that you back to try or try our best.

6:28
That will conclude this instalment of investor stories. If you’re enjoying the programme 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