Investor Stories 353: Best LP Question (Aoun, Dukach, Rueckert)

Investor Stories 353: Best LP Question (Aoun, Dukach, Rueckert)


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

  • Adrian Aoun
  • Semyon Dukach
  • Rob Rueckert

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 alligator. Here’s the segment called Best LP question.

0:36
On today’s special segment, we have Adrian iTune, founder and CEO of forward, Adrian, what is the best question a VC has asked you? Oh, I’m not sure I’m not sure any of them then incredibly good. I’m a VC so I can I can be acai here. Yeah, no. Okay. Well, yeah. When we started the company, you know, we went out to raise and I mean, from, you know, the luminaries, we pitched the Eric Schmidt’s, the Vinod Khosla as the benioff’s you name, every single one of them was like, what you’re doing is wrong because of blah, they always gave us a reason. Now, they were lucky enough, like we were lucky enough that they still invested frankly, probably because of our resumes, nothing else. And they’re like, you’ll pivot, whatever. But honestly, the we kind of wrote down every single big objection that consumers don’t care about health care bullshit, right? Like, you can’t insert technology into the most intimate portion of somebody’s life bullshit, etcetera. We gotta like objected to all these. And it turns out that in the end, like, again, because we thought of these things, from first principles, like we weren’t wrong on any of those prints on any of those kinds of hypothesis, doesn’t mean they were easy. They’re still not easy. I mean, there’s still things that we’re grinding away at, but I’m not sure that like any of kind of the core hypotheses of like, what will be the hardest part that the VCs add was was was necessarily correct.

2:00
On today’s special segment, we have Semyon do Kotch of one way ventures semi what’s what’s the best question that an LP has asked you be?

2:08
Well, one recent one that comes to mind was when when the interest rate why were changed or it’s in the last couple of years, right? That will be pointed out that the sort of tripling your fund over decades, right? With depending on the capital calls or whatnot, it might be 15, or 16% IRR kind of investment doesn’t look nearly as exciting to rational healthy, as when interest rates are very low. Like today, you can get close to that range was things that seem safer than venture capital X leverage REITs and whatnot, right? Like there’s, there’s, you got to do better, you got to do more. And so that was a question that challenged us in a really good way. And we we had kind of an immediate answer that like we’re doing some things incrementally that will do a little better, like our GSA was getting stronger networks is getting stronger, right. And that’s the process of support for companies all these things will improve it a little bit. And then a grand more concentrated we lead more not we will slowly lead to co lead now. Right? We used to write smaller checks, we will over diversified. So when you’re a little more concentrated to the fire conviction, you’re going to have maybe a little bit more risk right. And slightly higher returns. Of course, you don’t want to over diversify, you want to be concentrated. But the challenge was still like double that. Right. And I think I think we actually figured out a way not now but like for the next one, we actually figured out a way to expect to double our returns, which was that was a big challenge of question. I think we’ll get quiet so the answer just yet, but I think we might have a good answer for that.

3:44
On today’s special segment, we have Rob Rueckert of Sorenson capital. Rob, what is the best question you’ve been asked by an LP?

3:52
Yeah, you know, it’s, it’s, I find the best questions from investors are ones that are not numbers driven. When they when they really start asking, Why do you believe this company that you’ve invested in? What is it about this company that really caught your imagination? Why is it that you wanted to get behind this, I find that that is a lot more telling when you’re doing your homework on an investor than it is to just run the numbers. So I just need to I appreciate the the LPS that go deeper and make it a lot more personal.

4:32
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