The Full Ratchet · Sep 24, 2026
With John Chen, General Partner at Fika Ventures
John Chen said that passing on companies because of the deal terms, meaning the valuation and the ownership stake on offer, has been one of the bigger mistakes of his investing career.
His firm cares about keeping incentives aligned and terms reasonable on all sides. Chen said the companies that turn into outliers often come with terms that look different, or even outrageous, at the start.
"Starting with the work before thinking about the deal is a lesson I've had to learn many, many times over."
John Chen, general partner at Fika Ventures, gave the answer on The Full Ratchet's Investor Stories segment, where the host asks investors for the biggest mistake or hardest lesson of their careers.
The full segment is covered here so you can skip it.
Here are the 2 lessons that matter.
Key Takeaways
Passing on companies over deal terms was one of his bigger mistakes
Outlier companies often come with terms that look outrageous, which cuts against Fika's own focus on reasonable valuation and ownership
He now keeps the terms out of the discussion until he understands the opportunity and the founders
1. Passing Over Deal Terms
The host asked Chen for the biggest mistake or hardest lesson he has learned as an investor.
Terms have cost him deals he should have done
Chen said that in his own case, "passing on companies because of the deal spec has been one of the bigger mistakes." By deal spec he meant the proposed terms of the round.
The lesson cuts against his own firm's instincts
He said this runs against much of what Fika cares about: aligned incentives, and valuation and ownership that are reasonable on all sides. The companies that become outliers, he said, often look different or outrageous in certain ways at the time of the deal.
