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How to Avoid a Bad VC Investor with SaaStr CEO and Founder Jason Lemkin

SaaStr

10 Best advice if you’re going from bootstrapping to venture capital to avoid a mistake: First, it all normalizes around 8 to 10 million in revenue. The more subtle point is that after 8 or 10 million, you could, (a lot of times)raise the capital, but you don’t have to anymore. It is a niche asset class.

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The #1 Event for SaaS and Business Software: SaaStr Annual

SaaStr

Key points about SaaStr Annual : Focus on SaaS: Primarily focused on all aspects of SaaS business including sales, marketing, product development, and customer success. Large Audience: Considered the biggest SaaS conference with a large number of attendees from leading SaaS companies, startups, and venture capital firms.

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What You Need To Know About Venture Capital in 2023 with SaaStr CEO Jason Lemkin and Black Mangroves Founder and Managing Director, Arnaud Bonzom (Pod 661 + Video)

SaaStr

You can’t make money in venture unless you have companies that get to $100M or $200M in revenue within seven to ten years. Understanding what venture capital firms are looking for helps you make the best decisions for your specific company. If you’re frustrated with VCs, you have to understand their business models.

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The growing dissonance between two business models (SaaS and VC)

The Angel VC

For VCs, the question is how many of these companies can become large enough to make the (admittedly somewhat weird) business model of venture capitalists work. Not yet convinced that you shouldn’t raise venture capital? :) Let us know ! Large VCs need multiple unicorns just to survive.

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The Broken State of SaaS Sales Rep Comp

SaaStr

When reps want a $160k+ OTE for hitting say a $400k attainment, really, that’s only possible when fueled with a lot of venture capital. Not a bad thing per se, but it also put a lot of pressure on business models. Either higher quotas, lower attainment, or for a while, even more venture capital.

Scale 345
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Why VCs Need Unicorns Just to Survive

SaaStr

Because the (maybe semi-sad) thing for VCs is, only Unicorns make the business model work : Say you have a $200m VC fund (not that large, but basically our current fund, as an example). With 500 Unicorns, if you've been investing for > 8-10 years and haven't invested in one, You should quit venture capital [link].

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Top SaaStr Content for the Week: Chestnut, Lemkin, HubSpot, Point Nine and lots more!

SaaStr

Why The Business Model of Venture Capital is Really, Really Hard. Conan Economics, or How to Crush Your Enemies with Expensify CEO David Barrett. CEO Systems: 5 Lessons Learned from Scaling at Every Growth Phase with HashiCorp CEO Dave McJannet. appeared first on SaaStr.