article thumbnail

Dear SaaStr: How Do You Evaluate Startups for Seed Investments?

SaaStr

Dear SaaStr: How Do You Evaluate Startups for Seed Investments? Here are our criteria for SaaStrFund.com : Are both the CEO and CTO insanely good? Its a high bar, but if the founders dont meet it, Ive found there is a 0% chance of making enough money for a venture investment to work out. Better than I was as a founder?

article thumbnail

6 Of The Most Common Mistakes Entrepreneurs Make Pitching VCs

SaaStr

I’ve invested almost $200m as part of SaaStr Fund / 2024. Make the cold email so great, you’d want to invest based on just it alone. Make the cold email so great, you’d want to invest based on just it alone. Is this the type of investments they do? VCs don’t expect investments to be perfect. Not having a great CTO.

CTO 320
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Dear SaaStr: Why did Jason M. Lemkin Change his Point of View on The Value of a COO for Earlier Stage Startups?

SaaStr

I try to work with (and invest in) CEOs that are better than me. Or couldn’t stand your CTO. Dear SaaStr: Why did Jason M. Lemkin Change his Point of View on The Value of a COO for Earlier Stage Startups? I found, when I was a SaaS CEO, that the CEOs that complained about needing a COO early, that it was too hard (which it is), etc.

article thumbnail

Dear SaaStr: What Is It Like to be Pitched by Startups as an Investor?

SaaStr

There are really three modes from a VC perspective during a fundraising pitch: You Almost immediately want to do the investment. This is 80%+ of the investments Ive done. Almost all my investments at SaaStr Fund , Ive told the founders before the meetings end that Im in if everything theyve said checks out. The Almosts.

Startup 264
article thumbnail

Why Some VC Investments Work Out, and Some Don’t. What I’ve Learned.

SaaStr

Investments I've made that didn't work out: – Momentum investment – CEO a bit of bulls**t artist – CEO good at sales but weak product team / CTO. Investments I've made that had so-so outcomes: – CEO not better than me – CEO couldn't control burn rate – Not really SaaS.

article thumbnail

11 Signs To Predict If a Venture Investment Will or Won’t Work Out

SaaStr

Q: What was your failed investment experience and where will you never invest funds again? I’ve made about 30 material investments. Most have been successful, but of course not all have and I’ve been reflecting on the ones that didn’t, because they still had attractive elements when I invested. Great CEO But Mediocre CTO.

article thumbnail

Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment?

SaaStr

Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? You can’t keep investing in the same companies, at the exact same stage, same valuations, etc. When I’ve cut a corner here and invested in startups with customers that aren’t super-happy, it hasn’t worked out as well. But the NPS/CSAT has to be there.