2010 Related Topics 
Tom Tunguz
DECEMBER 13, 2022
In 2010, the median software Series A startup raised $3.2m & employed 15 people at about $150k average cost. If the Series A market follows suit, the median series A will fall to $7.8m, which means a 28 person company will have 17 months’ of runway - effectively identical to 2010 runway. Let me explain : Era. Median Salary.
Tom Tunguz
JANUARY 17, 2022
Let’s compare data from 2010 and 2021 to understand the longitudinal trends in cash and equity compensation. A VP of Engineering in a Bay Area startup that has raised less than twenty-five million dollars earned 33% more in 2021 than 2010. 2010 Equity. Cash Change. A nice bump. 2021 Equity. Equity Change.
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Tom Tunguz
MARCH 11, 2020
The market bounced back to similar levels once in Q2 2010, but needed eight quarters to return to its previous volumes. The Series B market had a nice resurgence as well, followed by a retrenchment in late 2010 and then another surge. That grew to about $5B per quarter in 2007 and early 2008. in the quarters following the crash.
Tom Tunguz
APRIL 1, 2019
In 2010, one venture dollar bought $1.24 If we look at the ROIC across IPOs across the last 12 years or so, we see that same initial dynamic of incredibly efficient companies in the 2010 and 2014 IPO cohorts. It’s tripled from about $92m to more than $300M since 2010. One venture dollar bought forty-two cents at IPO.
Tom Tunguz
JUNE 17, 2022
Series A has dropped from 30% to 20%; Series B from 22.5% to 12%; and Series C from 18% to 11%. Across financing rounds, dilution from capital has fallen by 30-50% in that decade. Cumulative Dilution Points. Here’s a table of cumulative dilution points for a hypothetical startup raising 4 rounds in one year.
Tom Tunguz
NOVEMBER 19, 2020
And it would be 4x the size of 2010. Let’s go through these one by one using the Pitchbook Venture Monitor Report. VCs have raised $57b through Q3, implying $75b for the year, a total which would eclipse any other year in the last decade. The late stage venture market is on pace to set a record in 2020.
Tom Tunguz
JUNE 20, 2024
The Seeds of the 2010 era are the pre-Seeds of today, making the comparison impure. Many new seed funds started & the rate of company formation surged during the early 2020s driven by an ebullient capital markets. Also, the definition of a Seed round has changed. Regardless, Series As haven’t grown to nearly the extent of Seeds.
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