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The Tough Side of Being Venture Backed: ActOn Sells for $53m After 17 Years … And Raising ~$53m+

SaaStr

Founded 2008 * Raises ~$53m in VC * Sells 17 years later for $53m * Only $20m of that cash * 2x ARR price * 1x What Raised Just plain tough. But what is 100% true is if you raise more than a few million in venture capital, especially more than $10m you have to deliver. Thats just how investing work. The stakes go way up.

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The Great Liquidity Shift

Tom Tunguz

I’ve written previously about how venture capital and private equity have parallel paths. As in private equity, we should start to expect secondaries to become a permanent and significant part of venture capital liquidity for both employees of companies and also investors.

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How Will a Venture Capital Recovery Feel? Observations from 2008

Tom Tunguz

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.

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What’s Really Happening in Venture Capital Today with Redpoint Ventures Managing Director Logan Bartlett

SaaStr

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. For the most part, it has leveled out in the 8-10x forward revenue multiple range and is largely consistent with where things traded from 2008 to 2018.

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Losing a Month of Runway to Inflation

Tom Tunguz

In February 2008, the ARS market seized. The point of raising venture capital is to have money when the company needs it. In the mid-2000s, many startups invested their excess cash reserves in instruments called Auction Rate Securities. Startups seeking to sell their ARSs to fund burn were out of luck : no one would buy them.

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5 Interesting Learnings from Expensify at $140,000,000 in ARR

SaaStr

Expensify: Founded in 2008 … 13 years ago. Founder-CEO Dave Barrett is famous for his views on the pros and cons of venture capital (see his talk from 2017 SaaStr Annual below) and he bought out most of Redpoint’s shares for $43m in 2018. A long, tenacious path to $100m ARR, and then … Boom!! *

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A New Chapter

Tom Tunguz

The US venture capital ecosystem has grown 40x in dollars from $8b to $320b invested in 10 years. Fueled by this capital, startup company formation rates touched fifteen-year highs in 2021. I remember joining in 2008, a green product manager out of Google who had just landed his dream job. This era will be no exception.