Tom Tunguz

APRIL 21, 2021

If things continue as they are, the venture capital ecosystem will mimic the stock market, which marks companies to market every minute. I can’t see that happening for a number of reasons, but the trend is real: with more dollars to invest, the market is becoming much more liquid. Just kidding.

Venture Capital 274

Venture Capital Innovation Startup Acquisition 274

SaaStr

JANUARY 12, 2021

You get to make about 30 or so investments from that fund. So those 30 investments have to return $800m. So a $200m VC fund needs $5.333 billion in exits (measured by the 30 companies’ collective value when the VC can finally sell their stock post-IPO or acquisition) to hit its own investors’ expectations.

Venture Capital 355

Venture Capital Business Model Acquisition Investment 355

SaaStr

OCTOBER 11, 2022

There are a lot of myths around venture capital. The first investors invested in 2012. A $20B acquisition … 10 years later. Now … imagine in year 10, one of those investments turns out to be a real rocketship. And the fund owns 20% of that investment. VCs are paid to wait. They waited for Figma.

Venture Capital 226

Venture Capital Investment Acquisition Sales 226

Tom Tunguz

DECEMBER 16, 2021

Tokens are the paid customer acquisition channel of web3. By analyzing how web3 companies invest tokens, we can calculate the cost of customer acquisition (CAC) for a crypto company. Let’s contrast the sales and marketing investments of web2 companies to web3 companies. L1 Web3 companies spend 29-95%.

Venture Capital 238

Venture Capital Blockchain Acquisition Benchmarks 238

SaaStr

OCTOBER 7, 2022

The number of global venture capital (VC) investments dipped in 2022, thanks to ongoing geopolitical tensions, turbulence in global capital markets, supply chain issues, and increasing interest rates. Venture capital firms pumped a lot of money into the economy during the pandemic, buying countless software companies.

Venture Capital 191

Venture Capital Marketing Startup Construction 191

Tom Tunguz

APRIL 16, 2020

Ideally, the management team should raise more capital to move to the upper right quadrant of the matrix. Venture capital, debt, or negotiating better cash collections (multi-year prepay) are all viable strategies to position the business to press its advantage. Plenty of cash and tepid demand (bottom right). Full speed ahead.

Strategy 290

Strategy Startup Venture Capital Acquisition 290

Neil Patel

NOVEMBER 9, 2020

That’s an expensive mistake if you make the wrong investment. Micro startup acquisitions. But before we dive into that, we need to look into what micro startup acquisitions are and why you need to sit up and take notice. Micro Startup Acquisitions: What Are They, and Why Should I Care? Micro Startup Acquisition Trends.

Technical Review 144

Technical Review Payment Methods Acquisition Development Team Review 144

SaaStr

NOVEMBER 25, 2020

There may be times, maybe even many times, in the earlier days when you look at VCs and Venture Capital and think — that’s the easy way. And you usually need a proven track record to do so, which takes years of promising investments. There is very little of this in a venture capital firm.

Venture Capital 312

Venture Capital Investment Acquisition Strategy 312

SaaStr

JULY 7, 2021

First, If you need to raise more venture capital, and aren’t doing incredibly well, a VC not being supportive can be a gating item to getting further funding. If your prior investors aren’t 100% positive, or at least, 90% positive on the investment … usually … the Next Round guys simply won’t invest. You can game this.

Banking 350

Banking Venture Capital Finance Investment 350

Clouded Judgement

JANUARY 12, 2024

Every type of investor was broadly operating in a “risk on” mindset given the ZIRP environment, and the venture capital ecosystem was no exception. An acquisition at $200m can be life changing for founders, or it can be worth nothing if they raised $250m at $1B valuation back in 2021. This all shifted in 2021.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

SaaStock

JANUARY 30, 2019

It is a venture capital firm based in Brazil and Silicon Valley. Its partners boast diverse venture experience and have previously invested in more than 70 companies. Stage: Early Stage Venture, Seed. SaaS Investments: Pipefy, HeyDoctor. Stage: Early Stage Venture, Late Stage Venture, Seed.

Venture Capital 155

Venture Capital SaaS Healthcare Finance 155

Tom Tunguz

APRIL 16, 2020

Ideally, the management team should raise more capital to move to the upper right quadrant of the matrix. Venture capital, debt, or negotiating better cash collections (multi-year prepay) are all viable strategies to position the business to press its advantage. Plenty of cash and tepid demand (bottom right). Full speed ahead.

Strategy 173

Strategy Startup Venture Capital Acquisition 173

SaaStr

OCTOBER 16, 2019

If that round is at $5m post-money, you get $1m to invest. If that round is at $10m post-money, you get $2m to invest. That’s a lot more to invest. A bit more here: The 10x Rule: What Raising $1 of Venture Capital Really Means (the 2018 Edition) | SaaStr. That means they may veto an acquisition of < $300m.

Startup 181

Startup Venture Capital Acquisition Investment 181

SaaStr

JANUARY 25, 2020

Equality and Unicorns in 2020: Aileen Lee of Cowboy Ventures and Jason Lemkin of SaaStr. We’re going to do something a little different here, and both catch up on the state of Equality in Venture Capital and Cloud, and also revisit Aileen’s classic pieces in TechCrunch that kicked off the age of the Unicorn.

Trends 209

Trends Venture Capital Scale PayPal 209

SaaStr

JUNE 5, 2020

I argue that standard saas metrics make it possible for founders to scale using debt capital (production capital thats cheaper) instead of solely relying on venture capital (financial capital thats more expensive). . 2004 Salesforce IPO Brought Financial Capital to SaaS Founders.

Venture Capital 214

Venture Capital Technical Review SaaS Scale 214

SaaStr

APRIL 11, 2023

Silicon Valley Bank specialized in venture capital-backed startups, primarily in tech. Understandably, the collapse of a venture bank where companies could lose billions of dollars was staggering. Hardware companies use venture debt for inventory to avoid tapping into equity. In March of this year, the U.S.

Banking 192

Banking Sales Hiring Venture Capital Communication 192

Baremetrics

SEPTEMBER 24, 2021

Equity financing is a method of capital raising via the selling of stock. They may need cash to meet immediate financial obligations or have a longer-term objective and require capital to invest in their development. What is the difference between Equity Financing, Loans, and Venture Capital Funding?

Finance 98

Finance Venture Capital SaaS Payments Payments 98

SaaSOptics

AUGUST 11, 2022

So what should you do if you’re strapped for cash and have your sights set on venture capital? In this case, you may not be prepared to take on a round of venture capital. Option 3: Mergers and acquisitions. The following questions will help you determine whether or not you’re ready to dive into the VC pool.

Scale 97

Scale Scaling Technical Review Venture Capital 97

Tom Tunguz

AUGUST 12, 2017

I hesitate to compare and contrast bootstrapped and venture backed businesses, because I’m a venture capitalist and it’s very easy to dismiss any analysis as biased in favor of venture investment. First, they invest 30% of their total cash in customer acquisition no matter the state of the business.

Sales Hiring 181

Sales Hiring Venture Capital Startup Finance 181

Andreessen Horowitz

MARCH 5, 2024

We have some rapid acquisition authorities. Sharon: Another thing you talked about is just this tremendous amount of private investment venture capital going into defense. But one of the concerns from those companies and from those investors is that it’s not being matched yet by acquisition dollars.

Acquisition 77

Acquisition Innovation Generative AI Artificial Intelligence 77

OPEXEngine

JANUARY 25, 2022

Though the SaaS segment hasn’t emerged untouched from market-wide volatility, SaaS continues to attract high multiples and significant investment interest in companies with strong business models and strong growth rates. Investment Scrutiny. But it’s not all bad news. . Speed to Market.

Venture Capital 52

Venture Capital Cybersecurity Forecasting Finance 52

SaaStr

MARCH 7, 2021

Even if you have almost no capital, you can afford to fly to visit your top customers, prospects and partners more often. Less and you under-invest. That was great and created freedom from venture capital and many other benefits. 10/ Investing aggressively in brand as you approach $10m ARR. on the balance sheet.

Part-Time VPE 249

Part-Time VPE Sales Recruiting Sales Hiring Scale 249

ChurnZero

JANUARY 14, 2021

The platform has 750,000 reviews, and $100M in total funding invested by IVP, Accel Partners, LinkedIn, Emergence Capital, Pritzker Group, Chicago Ventures, Hyde Park Ventures, industry leaders and founders. The company’s first acquisition, Siftery, was announced in December 2018 following its Series C funding.

Software Review 96

Software Review Venture Capital Customer Success Acquisition 96

Baremetrics

MAY 7, 2019

million – about half of all the cash they had on hand – to buy out their main venture capital investors after eight years since founding. After seriously considering an acquisition offer, Wistia decided to take on $17.3M TinySeed , Earnest Capital , and Indie.vc Buffer spent $3.3 ” Rob Walling of TinySeed.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

Tom Tunguz

JUNE 20, 2016

This is counterintuitive considering the broader venture capital backdrop of near record venture investment in software. Subverting those incumbents is going to require a meaningfully better product or substantially more effective customer acquisition channel. However, Pitchbook analysis corroborates this trend.

Venture Capital 100

Venture Capital SaaS Machine Learning Artificial Intelligence 100

Tom Tunguz

SEPTEMBER 9, 2013

The venture capital fund of the future will perform the same tasks as the venture funds of today: help portfolio companies, evaluate new investment opportunities and build networks of other investors, potential hires, and founders. Second, they must convince entrepreneurs they are the right partner.

Venture Capital 100

Venture Capital Finance Technology Startup 100

Andreessen Horowitz

OCTOBER 4, 2023

Prep and Outreach The lender universe is large and ever-evolving, as evidenced by the acquisitions of both SVB and First Republic earlier this year. OUR PRIVACY POLICY By clicking the Download button, you agree to the Privacy Policy. Topics of discussion will include company overview, background of the management team (i.e.,

Outsourcing Services 116

Outsourcing Services Software Review Scale Banking 116

Sixteen Ventures

SEPTEMBER 11, 2019

You must pay back your Customer Acquisition Cost (CAC) as fast as you can (relative to many things, including cash flow), otherwise you might win at getting your prospect’s attention… but you might run out of money in the process.

Venture Capital 87

Venture Capital Benchmarks Acquisition Investment 87

User Pilot

JUNE 13, 2022

We covered the best blogs on SaaS growth, product marketing , UX analytics, venture capital, and sales. The Angel VC blog is devoted to discussing internet start-ups, SaaS, and early-stage investing. The Brad Feld blog is one of the best venture capital blogs dedicated to entrepreneurs and investors.

Venture Capital 52

Venture Capital SaaS Data Scale 52

Incredo

OCTOBER 23, 2019

Not all investors are equal : you should target the right ones who are interested in investing in SaaS and tend to fund in your geography & startup stage. A person who agrees to invest in a risky early-stage business with no final product and customers, is probably an angel. First, angel investor or VC? What makes them different?

SaaS 154

SaaS Social Media Startup Scale 154

SaaSHolic

MAY 15, 2023

For startups, the speaker suggests focusing on how AI can drive customer acquisition and go-to-market strategy, while for large companies, creating a vision for AI is important, as well as focusing on infrastructure and skillsets and reshaping governance to deal with security and compliance issues.

Payment Methods 52

Payment Methods Blockchain Artificial Intelligence Payment Services 52

Tom Tunguz

JUNE 24, 2014

The dollars in and out of the venture market are relatively constant. LPs are investing into venture capital at a steady, and likely increasing rate. Over the last five years, dollars into the venture industry has remained at or below the 12 year median. 2014 looks to be a bit of a stronger year.

Marketing 100

Marketing Venture Capital Acquisition Startup 100

Point Nine Land

SEPTEMBER 7, 2021

In the last few quarters, Tiger Global has emerged as one of the most aggressive venture capital investors. It’s not entirely clear to what extent this impressive result is based on an extraordinary ability to pick future winners, help make winners, or invest in companies that are already very successful when Tiger invests in them.

Venture Capital 52

Venture Capital New CTO Scale CTO 52

ChurnZero

JANUARY 3, 2020

The platform has 750,000 reviews, and $100M in total funding invested by IVP, Accel Partners, LinkedIn, Emergence Capital, Pritzker Group, Chicago Ventures, Hyde Park Ventures, industry leaders and founders. com’s most recent funding, a $55M Series C, was announced in October. For more information, visit churnzero.net.

Customer Success 69

Customer Success Venture Capital Software Review Technical Review 69

Chart Mogul

JUNE 9, 2023

Logo acquisition is harder: upselling and retention are crucial. If you’re mostly selling to venture capital-funded startups a lot of them are probably trying to reduce their burn rate, so they will look at SaaS spend. (…) There are also aspects of SaaS as a business model or industry that make it really strong in tough times.

Trends 52

Trends SaaS Payments Payment Solutions 52

Kellblog

DECEMBER 27, 2021

Before diving in, let me remind readers that I do these predictions in the spirit of fun, they are not business or investment advice, and that all of my usual disclaimers and terms apply. Flood of venture capital (VC). Venture capital continues to flow. As the saying goes, we become our parents.

Blockchain 143

Blockchain Technical Review Venture Capital Sales Hiring 143

Tom Tunguz

JULY 14, 2013

With more than 80% of venture capital investments occurring in enterprise and with the public markets disproportionately rewarding SaaS companies with huge enterprise value-to-revenue multiples ( median is 7.6 ), it’s no surprise that interest Software-as-a-Service is booming. Characteristic 4: Efficient Sales Model.

Sales Hiring 100

Sales Hiring Venture Capital SaaS Machine Learning 100