SaaStr

SEPTEMBER 30, 2023

Should We Go After Venture Capital, and When? There are only two reasons to raise Venture Capital: You need it. If the only way you can get to the next level is to raise capital, then do it. Venture capital is very expensive in the early days, in terms of dilution. Dear SaaStr: We Don’t Need It.

Venture Capital 302

Venture Capital Investment Leadership 302

SaaStr

JULY 14, 2024

Dear SaaStr: How Hard Is It to Break Into Venture Capital? A bit more here: Dear SaaStr: What is the Best Way to Pursue a Career in Venture Capital? The post Dear SaaStr: How Hard Is It To Break Into Venture Capital? It’s a tiny industry that is tough to break into. Truly tiny. Be that person.

Venture Capital 253

Venture Capital Investment Startup 253

SaaStr

NOVEMBER 25, 2024

The post “The Three Months of Strong Growth” Rule in Raising Venture Capital appeared first on SaaStr. But put together 3 strong months, and go fundraise hard. 3 strong months a row is enough for VCs to believe; That the next 30-300 months will be epic, too.

Venture Capital 258

Venture Capital Product Marketing Marketing 258

SaaStr

SEPTEMBER 12, 2024

More here from Carta: The post Just Being Pretty Good at Venture Capital Isn’t Good Enough appeared first on SaaStr. The median 2017 fund is making money on paper, but not enough. And 2020 and 2021 funds look a little … rough right now. Maybe a lot rough.

Venture Capital 276

Venture Capital Investment Data 276

SaaStr

DECEMBER 29, 2023

If I had to summarize venture capital today, it would be like this: There is Very Little Oxygen Today Above $200m Valuations What do I mean? It’s still a weird world in venture: Firms are both shutting down and raising new funds. More entrepreneurs are doing direct investing themselves than ever. But Series D? -41%.

Venture Capital 312

Venture Capital AI Investment SaaS 312

SaaStr

AUGUST 1, 2021

Q: Dear SaaStr: What Happens and Changes After You Raise Venture Capital for the First Time? A few thoughts if you haven’t raised venture capital before: 1. The post Dear SaaStr: What Happens After You Raise Venture Capital for the First Time? Remember you have to prove yourself, still.

Venture Capital 289

Venture Capital Metrics Data 289

Tom Tunguz

FEBRUARY 9, 2023

Amy Cortese published “Venture Capital, Withering & Dying” in the New York Times on Oct 21, 2001. Venture capital funds lost 18.2 percent, on average, for the 12 months ended June 30, according to Venture Economics, while Internet-specific funds were down 27.7 This is a natural part of the cycle.

Venture Capital 214

Venture Capital Acquisition Investment Technology 214

SaaStr

DECEMBER 27, 2020

Q: How do Venture Capital Firms really feel about founder salaries? Let me add just one thought to the discussion on founder salaries, once you are venture-backed. The post One Simple Rule On How Much To Pay Yourself Once You Raise Venture Capital appeared first on SaaStr. 10k a year. 10k a month.

Venture Capital 283

Venture Capital Sales Hiring Scale Compensation 283

SaaStr

NOVEMBER 3, 2023

Dear SaaStr: Is 5 Co-founders Too Many When Raising Venture Capital? My first venture investment was Pipedrive, it had 5 co-founders and sold for $1.5 Venture capital is a business of outliers, but it also involved a lot of pattern-matching, for better or worse. Yes, it can work. 5 scares most investors off.

Venture Capital 255

Venture Capital Investment SaaS Business 255

SaaStr

JANUARY 25, 2024

That will weigh across venture. falling image from here ) The post Why 2024 May Be Tougher on Venture Capital Than 2023 appeared first on SaaStr. The bottom line is there likely is at least another full year of working through the excesses of 2021. No matter what some AI headlines suggest.

Venture Capital 255

Venture Capital AI Startup Investment 255

SaaStr

DECEMBER 7, 2024

The post Why Its Easier for Second-Time Founders to Raise Venture Capital. They spend a ton more money, and believe they can magically will product-market fit out of the thin air. Among other risks. Even With Nothing Even Built Yet. appeared first on SaaStr.

Venture Capital 251

Venture Capital New CTO CTO Product Marketing 251

SaaStr

APRIL 24, 2021

Q: Is venture capital really necessary to do a start-up? Atlassian never raised any primary capital and waited many years until raising money at all for secondary liquidity. The post Do I Need To Raise Venture Capital At All? Maybe it isn’t. It will soon be worth $15B+. And he’ll be worth $5B+. A bit more here.

Venture Capital 278

Venture Capital Scale Scaling Investment 278

SaaStr

JULY 2, 2024

Logan Bartlett, Managing Director at Redpoint Ventures, shares their yearly “State of the Market” report to understand what is and isn’t happening in venture capital today. The post What’s Really Happening in Venture Capital Today with Redpoint Ventures Managing Director Logan Bartlett appeared first on SaaStr.

Venture Capital 259

Venture Capital Management Scale AI 259

SaaStr

MAY 27, 2023

Dear SaaStr: When is a Startup Ready to Raise Venture Capital These Days? Churn too high Burn too high Competitors growing faster Already raised “too much” capital The post Dear SaaStr: When is a Startup Ready to Raise Venture Capital These Days? A lot harder. appeared first on SaaStr.

Venture Capital 256

Venture Capital Startup CTO Churn 256

SaaStr

NOVEMBER 11, 2022

The post Going Big in Venture Capital appeared first on SaaStr. Means Losing Biggish a few times, at least. Something to keep in mind based on who you take money from. Make it match your ambitions, your upside goals, and your downside tolerance.

Venture Capital 225

Venture Capital AWS Enterprise Investment 225

SaaStr

JULY 5, 2023

Dear SaaStr: Is Late-Stage Venture Capital More Stressful than Early-Stage Venture Capital? A deep dive on why late stage is harder than you might think here: The post Dear SaaStr: Is Late-Stage Venture Capital More Stressful than Early-Stage Venture Capital? appeared first on SaaStr.

Venture Capital 197

Venture Capital Investment Cloud Pricing 197

SaaStr

NOVEMBER 11, 2023

Dear SaaStr: What Are the Best Arguments Against Raising Venture Capital? The post Dear SaaStr: What Are the Best Arguments Against Raising Venture Capital? TIRED: “We’re raising a small $3m round before we do a Big $20m Series A later this year” WIRED: “We’re raising $3m to build a $100m+ business.

Venture Capital 239

Venture Capital Pricing Business 239

Tom Tunguz

JULY 17, 2022

I wish I had a chart of the bid/ask spread in venture capital today. The bid/ask spread in VC is the difference between the post-money valuation between a VC (the bidder) & a company (seller). In the past few years, the spread has been tight. The market is liquid. Many startups sell shares to buyers at mutually attractive prices.

Venture Capital 223

Venture Capital Engineering Startup Pricing 223

SaaStr

AUGUST 19, 2023

Dear SaaStr: What are The Top Challenges of Venture Capital Firms? The post Dear SaaStr: What are The Top Challenges of Venture Capital Firms? Generally there are three major challenges. The first one is non-obvious. Challenge #1: Raising Another Fund. While Sequoia, Benchmark, Founders Fund, etc.

Venture Capital 236

Venture Capital Benchmarks Investment Startup 236

SaaStr

OCTOBER 31, 2023

Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? A related post here: 10 of My Top Seed Investing Mistakes The post Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? History doesn’t repeat. But it definitely rhymes. appeared first on SaaStr.

Venture Capital 239

Venture Capital Investment CTO Churn 239

SaaStr

MAY 9, 2023

Dear SaaStr: What is the Highest Position in a Venture Capital Firm? partnership image from here ) The post Dear SaaStr: What Is The Highest Position in a Venture Capital Firm? The “Managing General Partner” or “Managing Director” or a similar title. In tiny VC firms, 2 partners may truly be equal and both run the place.

Venture Capital 224

Venture Capital Government Management 224

SaaStr

AUGUST 27, 2023

Dear SaaStr: How are Funds Invested by Venture Capital Firms? The post Dear SaaStr: How are Funds Invested by Venture Capital Firms? It varies of course, but roughly for bigger funds: Funds tend to invest in 20–40 startups over 2–4 years. Big and tiny funds may do more, but in general, this is the sweet spot.

Venture Capital 186

Venture Capital Investment Startup 186

SaaStr

DECEMBER 3, 2022

G2 put on its big annual digital event, G2 Reach , this week and we were lucky enough to host what ended up being a simply amazing session on the real state of venture capital right now. But it’s one of the deepest and most on-point dives on venture today I’ve seen in a while. (@jasonlk) December 2, 2022.

Venture Capital 214

Venture Capital Investment Cloud Startup 214

SaaStr

JUNE 22, 2023

Dear SaaStr: How Many Good Months Do I Need in a Row to Raise Venture Capital? The post Dear SaaStr: How Many Good Months Do I Need in a Row to Raise Venture Capital? Ideally, at least 4 good months in a row before you try to raise a Seed / Late Seed Round. And at least 2 good quarters for a Series A round.

Venture Capital 203

Venture Capital Investment Trends 203

SaaStr

AUGUST 2, 2023

Dear SaaStr: What Is The Job of a Venture Capital Fund Manager? Net net, this means returning at least 3x the capital they are given to invest. The post Dear SaaStr: What Is The Job of a Venture Capital Fund Manager? Ultimately, the job is to beat Nasdaq by at least 20%. Now what does the job look like?

Venture Capital 179

Venture Capital Management Investment Startup 179

Tom Tunguz

AUGUST 6, 2023

What will a venture capital turnaround feel like? In 2008, I had just become a venture capitalist. Will it be gradual or sudden? What will change the sentiment in the market? Three months later, Lehman fell & the Global Financial Crisis started.

Venture Capital 175

Venture Capital Acquisition Investment Marketing 175

SaaStr

MAY 19, 2023

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. Pay attention to multiples to get a pulse on venture capital.

Venture Capital 200

Venture Capital Management Business Model Trends 200

SaaStr

SEPTEMBER 9, 2022

During an enlightening session at SaaStr Europa 2022, Zach Coelius (Managing Partner at Coelius Capital) and Tiffany Luck (Investor at GGV Capital) share the secrets and lesser-known players in the world of venture capital. VC Associates. Remember, it’s a two-way street. Ask how they can help you (intros, feedback, etc.).

Venture Capital 207

Venture Capital Management Metrics Investment 207

SaaStr

DECEMBER 5, 2024

Carta release its latest funding data the other data for 2024 Year-To-Date here : What you can see is that large, hot AI later stage deals overall are indeed driving venture capital deployments up ~ +17% the year. But that’s for late-stage capital. So it’s interesting how folks craft headlines from data.

Venture Capital 267

Venture Capital AI Data 267

SaaStr

MAY 17, 2020

Q: What don’t they tell you about venture capital firms? A few things that aren’t obvious when you raise venture capital: Your VC partner may leave. There has been much more transition in VC firms in the past 5+ years. Partners leave to found their own firms in particular all the time now.

Venture Capital 363

Venture Capital Investment SaaS Sales 363

SaaStr

MARCH 5, 2021

When you go to raise venture capital, if you are in the fortunate group of start-ups with access to venture capital, you’ll either have options (more than one VC wants to fund you), or you won’t. If (x) you only have 1 offer and (y) you need to raise venture capital, the only question to ask is probably When.

Venture Capital 333

Venture Capital Branding Pricing Investment 333

SaaStr

DECEMBER 8, 2023

Don’t raise venture capital. Venture capital is not a gift. Venture capital is not an accomplishment. Venture capital is not free. Venture capital is not a tap. Venture capital is highly dilutive. Venture Capital, at least U.S.-style Mailchimp did.

Venture Capital 265

Venture Capital SaaS Leadership 265

SaaStr

FEBRUARY 19, 2024

Roughly speaking, this is what generally will happen after 3 rounds of traditional venture capital. This is after 3 full rounds of venture capital, and if you are then on the path to IPO or Big Acquisition (which hopefully you are if you take 3 rounds), that 10% (or whatever amount) will still be worth a lot.

Venture Capital 291

Venture Capital Acquisition SaaS Leadership 291

SaaStr

SEPTEMBER 9, 2022

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. Either higher quotas, lower attainment, or for a while, even more venture capital. At least, unless there is a ton of venture capital funding the gap.

Scale 315

Scale Venture Capital Sales Hiring Sales 315

Tom Tunguz

APRIL 16, 2023

In The Figures that Will Move the Venture Capital Market in the Next 3-5 Years , I wrote about the correlation between interest rates & venture capital investing. The correlation is strong enough to build a simple prediction of early stage venture capital activity in 2023. correlation to -0.51.

Venture Capital 288

Venture Capital Government Marketing Banking 288

SaaStr

DECEMBER 7, 2020

“How Would a Person Start a Venture Capital Fund?” More details on why and how here: How would a person start a venture capital fund? “How Bridge Rounds Work in Venture Capital: Messy, Full of Drama, and Not Without High Risk.” Zoom and Shopify zoomed past $100b in valuation.

Venture Capital 331

Venture Capital Sales Hiring AWS Cloud 331

SaaStr

JANUARY 11, 2023

The post Investing and Venture Capital in 2023 With SaaStr Founder/CEO Jason Lemkin and Atrium Founder/CRO Pete Kazanjy (Pod 624 + Video) appeared first on SaaStr. Find an experienced investor who you feel a connection with and who believes in your vision.

Venture Capital 180

Venture Capital Investment Sales Hiring Entrepreneurship 180