Venture capital has powered the rise of countless startups, fueling innovation and economic growth. But beneath the surface, structural flaws in the industry have long disadvantaged founders, early investors, and even limited partners (LPs). In this episode of The Ignite Podcast, we had the privilege of speaking with Adeo Ressi, a serial entrepreneur, investor, and reformer who has helped launch over 600 venture firms through VC Lab and Decile Group.
Adeo has seen firsthand how venture capital operates—both as a founder and an investor—and he’s spent decades working to fix a broken system. Our conversation spanned his journey from launching billion-dollar startups to revolutionizing venture funding with new ethical standards and investment models. If you’re a founder, investor, or someone who believes in reshaping finance for the better, here’s what you need to know.
The Root Problems of Venture Capital
Venture capital hasn’t always served founders well. In its early days, the industry was riddled with predatory practices:
✅ Extreme liquidation preferences (like 5X participating preferred stock) that left founders and early investors with nothing after an exit
✅ Aggressive board control tactics that pushed out the very people who built the company
✅ Opaque side deals that secretly altered the economics of a startup’s funding rounds
Adeo was one of the first to publicly challenge these practices. His platform, The Funded, allowed founders to rate and review venture firms, exposing bad actors and forcing change in how investors structured deals.
His advocacy eliminated some of the worst abuses, but the system still had fundamental issues. That’s why Adeo went beyond individual deals—he decided to rebuild venture capital from the ground up.
A New Ethical Standard for Venture Capitalists
One of Adeo’s biggest initiatives is the Mensarius Oath, a code of ethics designed to hold investors accountable. Inspired by the Hippocratic Oath in medicine, it ensures VCs operate with integrity, fairness, and transparency.
Under this model, investors pledge to:
✔️ Invest with integrity—ensuring their actions benefit founders, LPs, and humanity
✔️ Avoid exploitative terms that trap founders in unfair deals
✔️ Increase transparency by disclosing side letters and deal terms that impact others
This initiative isn’t just about making VCs "nicer"—it’s about ensuring that the venture model remains viable in a world where founders increasingly prefer bootstrapping or alternative funding methods.
The Future of Startup Funding: SAFE vs. ACE
Adeo is also redesigning the financial instruments that underpin venture investing. Years ago, he helped create and popularize the SAFE note, which replaced predatory convertible debt structures and became the dominant funding method for early-stage startups.
Now, he’s working on an even better financing model: the ACE. While he didn’t reveal every detail, he hinted that it would:
🔹 Address the issue of SAFEs staying open indefinitely
🔹 Give investors clearer rights while remaining founder-friendly
🔹 Improve the overall mechanics of early-stage funding
Given his track record with startup finance, the ACE could redefine how new companies raise capital—potentially making funding rounds more equitable and efficient.
A New Vision: Venture Capital That Works for Everyone
Adeo believes that venture capital isn’t just about making money—it’s about solving the world’s biggest challenges. From climate change to AI innovation, venture capital is uniquely positioned to drive solutions at scale. But to do so, the industry must become:
More transparent—founders shouldn’t have to play a guessing game with investors
More liquid—investors should have ways to exit without waiting 10+ years
More aligned—where both founders and investors benefit from success
At Decile Group, Adeo is building a future where investors seek out great startups, not the other way around. He envisions a world where capital flows more efficiently, and where venture-backed solutions drive real change—not just exits for a privileged few.
Final Thoughts: Will Venture Capital Evolve or Be Left Behind?
The world is changing. Founders have more options than ever, and venture firms that fail to adapt will struggle to compete. Adeo’s mission is to bring venture capital into the modern era—where it’s ethical, founder-friendly, and optimized for real-world impact.
If you’re an investor, entrepreneur, or simply someone curious about the future of funding, this conversation is a must-listen.
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Chapters:
Welcome & Guest Introduction (00:01 – 00:59)
Adeo Ressi’s Career Journey & Early Entrepreneurship (01:00 – 03:53)
Building Billion-Dollar Companies & Early Exit Stories (03:54 – 05:48)
The XPRIZE, Elon Musk, and SpaceX’s Early Conversations (05:49 – 08:24)
Venture Capital’s Broken Model & Early Fixes (08:25 – 11:29)
Predatory VC Practices & The Funded’s Impact (11:30 – 15:18)
Reshaping Venture: The Mensarius Oath & Ethical Investing (15:19 – 17:39)
The Founder Institute & Global Startup Ecosystems (17:40 – 19:41)
Launching VC Lab & Decile Group to Fix VC (19:42 – 22:26)
The Scale of VC Lab: Over 600 Venture Firms (22:27 – 25:31)
Challenges in Raising & Managing Venture Capital (25:32 – 28:42)
Investor Misconduct & Bad Practices in Late-Stage VC (28:43 – 31:54)
Exits, Waterfalls, & How VCs Control Founder Payouts (31:55 – 35:22)
The SAFE Note Revolution & The Future ACE Model (35:23 – 39:07)
How Venture Capital Needs to Evolve for the Future (39:08 – 42:45)
The Role of AI in Venture & Startup Disruption (42:46 – 45:58)
The Future of Fundraising: Investors Seeking Founders (45:59 – 48:38)
Going Public: Decile Group’s Next Big Step (48:39 – 51:20)
Building High-Performance Teams & Hiring the Best (51:21 – 55:42)
Why Every Founder & Investor Needs to Embrace AI (55:43 – 58:26)
Rapid Fire: Exciting Startups, VC Firms & Books (58:27 – 01:04:02)
Closing Thoughts & The Future of Venture Capital (01:04:03 – 01:07:36)
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