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Inflation and Deflation in Web2 and Web3 Startups

Tom Tunguz

Before a startup is founded, no stock exists. The startup can inflate share count by creating shares. By the time it’s public, more than 100m shares exist across hundreds of shareholders (employees, institutional investors, retail investors). Conversely, the company can deflate share count by buying shares and destroying them.

Startup 278
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SaaS Funding Napkin, the 2017 edition

The Angel VC

Today is January 10, 2017. In less earth shattering news, the fact that it's 2017 also means that my "SaaS Funding in 2016" napkin needs an update. Today I'd like to take a stab at the (early) 2017 answer to that question. So, what does it take to raise capital, in SaaS, in early 2017? Here's the 2017 SaaS Funding Napkin!

SaaS 262
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SaaS Fundraising in 2017

Tom Tunguz

Comparing 2017 averages to seven year highs, we observe Series A, Series B, and Series Seed round sizes are effectively at their all-time highs, ignoring some minor differences. Should the current trend continue, 2017 would see the fewest number of rounds since 2012, and a 45% reduction from 2014 high. billion from $4.2

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The Fastest Growing Sectors of Startup Fundraising in 2020

Tom Tunguz

From time to time, I chart the fastest growing categories of startup investment in the US for seed through Series C. Here are 2015 , 2017 , This year, I was certain the categories would have been influenced by COVID19.

Startup 352
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High-Flying SaaS Startups' Surge Won't Change the Valuations in Ventureland

Tom Tunguz

The rest of the top quartile has remained depressed, suppressing the cohort to 2017 levels, just as they were last year. But rally hasn’t convincingly beaten the black line representing the 2017 median. These top five stocks explain the most recent earnings upward in the chart above.

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Every Venture Backed Startup is Now Competing for Reserves

SaaStr

If as a VC you invested at $10m pre initially, and say it’s 2021 and that same startup is doing a 100x round at a $300m valuation, this early VC fund can pick and choose whether to invest more or not. For example, SaaStr Fund I from 2017 has now deployed $61m of its $68m. Older funds run out of reserves. Just ask. No one asks.

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Sales Efficiency through Covid : Reading the Tea Leaves for Startups

Tom Tunguz

In 2017, SaaS companies reported their cost of customer acquisition had increased by 65% in the previous five year period. What happened to these figures during Covid? We can examine the sales efficiency of public software companies to get a sense.