On this special segment of The Full Ratchet, the following Investors are featured:
- Sandeep Patil
- Jill Chase
- Eric Boduch
Each investor highlights a situation where they decided not to invest, why they passed, and how it played out.
The host of The Full Ratchet is Nick Moran 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:
0:19
Welcome back to TFR on today’s special segment, we ask guests to discuss their anti portfolio, a startup investment that they passed on. Here’s the segment called Why I passed
0:35
on. Today’s special segment, we have Sandeep Patil of QED. Sandeep, can you tell us a story about a startup that you passed on? Oh,
0:44
okay, story of startup that I passed on? Yeah, I think I typically don’t like to like to take names, so just go by sector. But there’s a startup that was in wealth management in India that we passed on. It really ticked the boxes in terms of the India bully case that I just laid out, it was building for top 10% of India’s population. It was really trying to do a technology first go to market, but also had an assisted model for the wealthy. It had the right ingredients in terms of founders, right management team, right technology infrastructure to back it up. We passed on it because we felt this was not really a pure tech play, and we had some concerns about kind of building wealth tech at scale in an emerging geography, so we passed on it. It’s since then, obviously the rounds have closed, and that company seems to be doing well. It has actually outperformed on its revenue metrics. So we stay in, we stay close to the founders to see if there are future opportunities for community to participate. But it’s something that definitely features in our NT portfolio.
1:55
On today’s special segment we have Jill chase of capital G Jill, can you tell us a story about a startup that you passed on? Yes, ooh, the
2:03
anti portfolio question. Yeah, many one that’s top of mind for me right now. I It’s a big regret of mine. I talked a little bit before about how we are highly thematic investors. When I heard that the previous round of a bridge was was going down, probably heard about it two weeks before the round was happening, and I was like, Yeah, I mean, this, this makes a lot of sense. It’s really interesting to me, but I don’t know enough about the healthcare space to feel like in two weeks I’ll be able to make a good decision. And I also don’t think I’m honestly well equipped to be a good partner to shiv, who’s the CEO at that time, and I regret that. I think that that will end up being, I mean, it’s an exceptional company. I hope to partner with them in the future. I think that will end up being a really good round. And I I wish I had been more on the ball to start to have started to understood healthcare and AI applications healthcare sooner than I did, so that I could have been better equipped to partner with them and have made a good decision on the round. Well, maybe another shot on goal on that. I’m hoping not to that. Yeah, your lips to God’s ears.
3:12
On today’s special segment, we have Eric bodak of Pendo rev cast in 24 and up. Eric, can you talk to us about a critical opportunity or decision that you chose not to pursue, was it the right call, and why did you pass on the opportunity? Well,
3:27
I mean, there’s lots of those. I mean, you think about it, I could, I could answer this from a product or a marketing perspective or a lot of different things, but I think you know that the biggest thing, and I’ll answer this in general terms, is you only can do so much. So we have a tendency as people, as product managers, as sales leaders, trying to get deals done, to try to get to the yeses and realize that there’s maybe a better way to do that. In the case of product management, it’s probably saying no to a feature or a customer, even if that means you’re going to lose that deal, but maybe it’s just going to distract you from eight other deals down the line. As a sales leader, it might be just identify, or as a sales person, it might be identifying, you know, deals that are just too much work, right? That are just too hard, you know that you’re just your your company, your product, just isn’t ready for and being able to say, you know, that’s not my ICP, that’s not my priority right now and then as a as an investor, as an entrepreneur. You know, there’s some deals where you really love the person, but you you don’t love the market, or vice versa. And I think you know, being able to say no and not just try to make something work, that you have hesitation from from the get go, or hesitation with from the get go. That
4:44
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. Am over prepare, choose carefully and invest confidently. Thanks for joining me.
