201. [REPLAY] Economic Theory in Venture Capital (Mark Suster)

Mark Suster of Upfront Ventures joins Nick to discuss Economic Theory in Venture Capital. In this episode, we cover: You’ve written about a major lesson from Clayton Christensen’s book, the Innovator’s Dilemma, which was one of ‘deflationary economics.’ Can describe what this means and why it should be a focus for startups? In light of deflationary economics, what are the key questions that a founder should ask him/herself about the business? Why is it that incumbents have such a hard time responding to startups w/ this approach? What should new market entrants focus on when it comes to price vs. functionality? At a high-level what are your thoughts on the trade-offs between growth and profitability? What are your impressions of what Bryce Roberts is doing at Indie VC? How have your thoughts on investment psychology and economics been influenced by The Black Swan by Nassim Taleb? What other principles of economics, that we haven’t touched on, have informed your investment philosophy? In light of today’s topics, what are the key things you’re looking for in startups? Can you talk about Defy Ventures and your experience visiting California State Prison and the impact that Defy is having? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.