article thumbnail

How VCs Value Rainbow Foals in 2022

Tom Tunguz

From 2007 to 2016, $1.5b marked the upside case for most VC software and infrastructure investment memos. Fewer than 15 SaaS companies traded on public exchanges then. With at least 20 firms and several partners per firm chasing unicorns, upstarts faced stiff odds. 2015 Return Multiple by Round. Return Multiple at $1.5b.

Startup 252
article thumbnail

What Could the Venture Market Look Like in the Coronavirus Era

Tom Tunguz

In 2006, VCs invested about $3.5B That grew to about $5B per quarter in 2007 and early 2008. Then the investing velocity fell by half to $2.9B, $2.7B, and $2.3B Seed investments suffered a 50% fall in Q3 2008, but the market came right back in Q4 and continued to increase in volume. Let’s look at the data.

Marketing 336
Insiders

Sign Up for our Newsletter

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

article thumbnail

The Power of Going Long in SaaS

SaaStr

2013: first investment. in first angel round in 2007. Unable to raise any money. Solo founder. First product doesn’t work, no revenue for 3 years. 200m from Silver Lake. 2016: IPO at $1.15B market cap. 2020: Worth $7B today. Zendesk : Founded 2006. Raised $500,000 (!) IPO in 2014 at $1B. Worth $2B by 2017. Today worth $16B.

SaaS 208
article thumbnail

Instacart

Andreessen Horowitz

Investing in Instacart was perhaps the hardest decision I had to make as a venture capitalist. Instacart was taking a unique approach to tackling this category, using a four-sided marketplace dynamic: By partnering with physical grocers, they were able to leverage those partners’ existing investments in construction and inventory.

article thumbnail

GTM 71: Writer CEO Tells All: Securing Enterprise Customers with a PLG Motion | May Habib

Sales Hacker

May Habib started her career in banking at Lehman Brothers in 2007, a very interesting time to be in the frontlines of that world. She then worked at a sovereign wealth fund and started her entrepreneurial journey in software localization. May started Writer in 2020.

article thumbnail

How To Keep Your Customers For a Decade. Or Longer.

SaaStr

it wasn’t until later on in 2007 that we had enough revenue to create a large enough group of customers to go on a 10 Year Journey with. Customers invest in not just products, but relationships. If you compare them over 10 year lifetimes, you’ll see you should probably invest much more in the bigger customers.

Scale 349
article thumbnail

Clouded Judgement 9.29.23 - Rates Keep Going Up

Clouded Judgement

Pretty crazy to think about - growth adjusted multiples are near pre-covid all time highs (excluding 2020-2021 period) even though rates are as high as they’ve been since 2007 (and double what they were on average from 2010-2020). This is for information purposes and should not be construed as an investment recommendation.

Cloud 183