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Q: What are some common mistakes that investors make when evaluating potential startup investments (such as Seed or Series A)? A few I’ve made and watched others around me make: Invest in good traction with a pretty good but not great CEO. Investing when you aren’t sure but someone else really successful is investing.
Since then, I’ve made some pretty good other investments as well. The top reasons an investment has turned out to be a Zero: #1. The post The Investments Where I’m Going to Lose All My Money appeared first on SaaStr. cash Second was Algolia leading U.S. But also, I made some that … weren’t.
Dear SaaStr: How Much Should a SaaS Company Invest in Professional Services? Now how much to invest is a different question. Don’t Forget the Services Revenue (image from here ) The post Dear SaaStr: How Much Should a SaaS Company Invest in Professional Services? Oftentimes, changing more than Salesforce does itself.
The worst investments for me have one common theme: The founder was a bit of a B.S. I still invested. The post The One Thing My Worst Investments Had in Common appeared first on SaaStr. It’s a fine line between being a salesperson, and being the #1 evangelist and advocate … and being a B.S. It’s so hard.
Speaker: Peter Cowen, Managing Director, Sutton Capital Partners & Tim Draper, Founder, Draper Associates
Join Peter Cowen, Managing Director at Sutton Capital Partners, with top VCs looking at the trends and perspectives on investing in today’s climate. Come join us for any of these sessions to hear from these top seasoned investors and get answers to these questions: How are VCs now looking at investing in the short term?
Dear SaaStr: How Do You Evaluate Startups for Seed Investments? 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. The post Dear SaaStr: How Do You Evaluate Startups for Seed Investments? Better than I was as a founder? It’s hard.
Dear SaaStr: Should You Always Ask a Co-founder to Invest Their Own Money? And many times even a small investment will be very stressful for some co-founders. However, whoever contributes cash should usually either be repaid, at least partially, or get extra equity for that investment. I made 12x on that investment.
Dear SaaStr: Do angel investors or seed venture capitalists normally ask for detailed budgets including cash flow analysis before investing, even though most of the numbers will be pure speculation? The post Do Angel Investors and Seed VCs Ask for Detailed Budgets Before Investing? When it is, you can learn a lot.
Dear SaaStr: Why Do Angels Invest Even if Most Of Them Fail? True angels invest so early, maybe only 2 out of 50 make any real money. If it’s just 1 Big Winner out of 50 angel investments, to even just double your money, that winner has to do 100x. And is a 10x Return Even Enough? You’re right, 10x isn’t enough.
Join Peter Cowen, Managing Director at Sutton Capital Partners with top VCs looking at the trends and perspectives on investing in today’s climate. Come join us for any of these sessions to hear from these top seasoned investors and get answers to these questions: How are VCs now looking at investing in the short term?
Dear SaaStr: Have You Ever Made a Very Risky Investment That Paid Off Big Time? More of the story here: The post Dear SaaStr: Have You Ever Made a Very Risky Investment That Paid Off Big Time? In my first start-up, the VCs pulled our term sheet between signing and closing. But sometimes … you just do it. appeared first on SaaStr.
Dear SaaStr: How Would You Invest a 5 Million Dollar Payout From an Acquisition? He still hadn’t figured out how to invest it! Here’s my best advice: First, resist the urge to invest in anything specific at first. Don’t invest in restaurants or real estate ventures you don’t understand.
Dear SaaStr: How Can I Convince My Investor We’ll Double Their Investment By The Next Round? If you are a VC / private investor, there’s a key meta question: why invest now ? There are really two, related answers to “let’s wait” One is because if you don’t invest now, it will be too late.
Those rare investments that return enough money to the VC fund to pay off at least 1x the total fund size. And you can see VCs are often pretty careful to make sure structurally, any given investment can do it. Investing in the #3 or #4 in a space? It’s not what anyone hoped when they invested. A 1% stake?
Speaker: Peter Cowen, Managing Director, Sutton Capital Partners & Ben Narasin, Venture Partner, NEA
Join Peter Cowen, Managing Director at Sutton Capital Partners with top VCs looking at the trends and perspectives on investing in today’s climate. Come join us for any of these sessions to hear from these top seasoned investors and get answers to these questions: How are VCs now looking at investing in the short term?
Dear SaaStr: Would You Invest in a Start-Up With 6 Co-Founders? UPDATED The post Dear SaaStr: Would You Invest in a Start-Up With 6 Co-Founders? I’ve done it — once. At least with 5 true co-founders. And that startup did end up selling for over $1 Billion (!) — so it’s not a firm “No.” But it did have the exact issues you’d expect.
We are thrilled to announce our investment in Allium , alongside friends at Amplify & Kleiner Perkins. Allium collaborated with Visa to measure the growth of stablecoin users, 27.5m monthly actives at the time, as well as isolate bot & human transaction activity.
Dear SaaStr: What Is The Average Time it Takes a VC to Make an Investment Decision? For hot seed and even Series A investments? The average VC basically makes the initial decision to tentatively invest very quickly — pending due diligence, confirming her theories are correct, and making sure what they think is the case actually is.
Billion To Invest in More B2B Companies appeared first on SaaStr. But there have only been 4 B2B / SaaS IPOs since 2021, and M&A is way down. That leads to stress. The post SaaS Is Back, But Different: Insight Partners Raises $12.5
Join Peter Cowen, Managing Director at Sutton Capital Partners with top VCs looking at the trends and perspectives on investing in today’s climate. Come join us for any of these sessions to hear from these top seasoned investors and get answers to these questions: How are VCs now looking at investing in the short term?
In a recent Office Hours, Baris Gultekin, Head of AI at Snowflake & a friend from Google, shared his insights into Snowflake’s approach to AI. It was a great conversation to understand how one of the leading data companies is pushing AI forward. The video for the session is here & the audio is here.
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. They right stage?
What’s your most recent disclosed investment? I invested in a company named CAT Labs in Q1 of this year. What’s your sweet spot for investing — check size, stage, type of deal? My main focus is to invest in Series A with an initial check of $5-15M, although I do reserve an interest in smaller checks for late Seed rounds.
What’s your most recent disclosed investment? What’s your sweet spot for investing — check size, stage, type of deal? We invest in early-stage startups, so we’ll participate in Seed through Series C rounds, with an emphasis on Series A and B. What’s different about your fund / how you invest and support founders?
It's a must-read for SaaS companies looking to attract investment and achieve sustainable growth. The article guides SaaS executives in developing strong payment strategies, focusing on the right platform selection, user experience, and ensuring security and compliance.
Have we lost interest in investing in the human side of sales? For the most part, folks seem done investing in more productivity for their sales humans. In 2021, everyone bought 100 new sales and revenue apps to keep the sales engine humming, along with large investments on the human side of RevOps, Customer Success, and more.
We’re obviously written up a lot about Fundraising and Investing here on SaaStr.com, but time and time again, SaaStr CEO and Founder Jason Lemkin has seen so many Founders sign a bad term sheet based on gut instinct, VC celebrity or vibes, and while that may be fine, it’s not enough.
Most Smaller VC Funds ($100m or smaller fund) would like to own 10% or more after a Seed or Pre-Seed Investment , but typically model around 7% average ownership. If it’s not a core investment, VC funds may be more flexible. But these exceptions to ownership targets make these investments non-core.
Aside from the overall growth of these clouds increasing, the massive investment in CapEx data centers, power plants, and GPUs is stunning. Google and Microsoft would wait another two years to replicate a similar level of investment. Google and Microsoft would wait another two years to replicate a similar level of investment.
Forward-thinking marketing organizations have continuously invested in a database strategy for enabling marketing processes. It involves finding a data management provider that can append contacts with correct information — in real-time.
Traditional VCs usually reserve another 1x-2x of their first check for later investments. If the synergies are real, they’ll happen irrespective of some token investment. An investment won’t create a partnership. An investment may anoint one vendor in the space as the preferred vendor over competitors. Be realistic.
Most dramatic is later-stage investing, with the latest Crunchbase data showing Series D rounds are now own 92% (!) Well, it doesn’t mean VCs have no money to invest … today. When VCs aren’t sure they’re going to have nearly as much money to invest themselves going forward. Now what does that mean?
More entrepreneurs are doing direct investing themselves than ever. So net net we still see very high levels of seed investment. … And a great recent deep dive on VC SaaS investing here: The post Raising Venture Capital in 2024? It’s still a weird world in venture: Firms are both shutting down and raising new funds.
Share everything anyone would want to know to invest in you. But unless you are raising from folks that truly invest pre-revenue, investors are going to want to see 3 strong months of growth in a row. If nothing else, point out an existing investment or two theyve made that is somewhat similar to yours. # Share it all.
If you’re investing in a B2B sales training initiative, give your program the best chance of success by implementing a reinforcement program designed to improve retention and keep the momentum of your training message going until your reps have the opportunity to really apply it. Or will it all be forgotten within days?
A VC fund will typically do 30-ish investments per fund. of the fund, on average, per investment. If they invest say $2m into your start-up and it fails, that’s a bummer. Or if it’s one of an individual VC partner’s biggest investments. Typically, though, that’s over 3–4 rounds of investment.
Having led sales teams of 500+ at BILL and 800+ at HubSpot, Michelle has unique insights into what makes great frontline managers and why investing in them is crucial for sustainable growth. “At HubSpot, I had over 100 frontline sales managers reporting to me. ” The bottom line?
Just as in 2012, a surge in seed investments met a relatively stable Series A market. The orange crush of seed investment has outpaced the growth in Series A & Series B rounds. Software companies that have achieved the previous era’s milestone, $1m or more in ARR, face a challenging Series A market.
Invest in People You want to keep the bar high on talent, especially in hypergrowth, and not just in the early stages. Invest Heavily in Onboarding Your typical employee takes about three to six months to get ramped. Invest Early in Your Marketing When scaling the GTM engine, you want to invest early in marketing.
It's important to also invest in building a passive candidate pipeline. At some point in your role as a recruiter - perhaps more frequently than not - you'll need to fill a position quickly and you'll look for active recruitment strategies to do it.
What’s your most recent disclosed investment? We recently led a [ $50M series B ] investment in Todyl, which is a modular cybersecurity platform for small and medium businesses. What’s your sweet spot for investing — check size, stage, type of deal? What’s different about your fund / how you invest and support founders?
Conversely, Don’t Feel Pressure to Invest and Deploy Capital. One of the all-time best SaaS VCs just invested in one of my companies. He said it was his first investment of the year (in December), and the only thing he’d seen he got really excited about in the last 12 months. You will feel this pressure.
Private Equity does have record amounts to invest. #4. Software growth is the next big phase from AI investment. AI Deals Are Only 3% of VC Deals But Consuming 15% of Total VC Capital They’re also raising at 5x the valuation for non-AI deals. #3. Will Private Equity (“PE”) Exits Bridge The Gap? Fingers crossed!!
As a reminder, the SaaStr Fund is investing $170,000,000 in seed and late-seed investments. Algolia and Legacy Investment Talkdesk in BVP Cloud 100! A big week at SaaStr Fund! 750k-$4m checks for SaaS, Cloud and B2B startups at from $10k-$200k MRR. Some great news this week: #1. Great to see for these pre-IPO leaders!
Without these insights, marketing campaigns can feel more like guesswork, with high investment and little return. One of the biggest challenges for any B2B marketer is understanding your prospects’ next move — who is most likely to buy and when. We’re here to tell you there’s a better way.
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