The Full Ratchet: Vc | Venture Capital | Angel Investors | Startup Investing | Fundraising | Crowdfunding | Pitch | Private E

Chris Douvos of Ahoy Capital joins Nick on a special Crisis Coverage installment to discuss the LP Lessons from '01 and '08, The Denominator Effect, Capital Calls & Fundraising in a Down Market. In this episode, we cover: What is the denominator problem/effect? Why does it matter? How do LPs react when they face the denominator problem? How quickly do LPs tend to rebalance their investment portfolio? What's the implication to VCs? How should VCs react when their investors face the denominator problem? LPs lose access to future funds if sell position as secondary? When VCs make capital calls at times like these, what's the ripple effect down the line for these LPs? What were some of the typical LP reactions you've seen from the dot com bubble and the 2008 crisis, that you expect to see again? Can you talk more about the thought process of LPs during a crisis like this? Are they rushing to liquidate? Are they putting that money somewhere else? VC capital calls - guidance? What's the impact on VCs that are