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Why Now is a Great Time to Raise Seed Funding. Even If It’s Awful for Series A-E Rounds.

SaaStr

So now is simply a terrible time to be raising growth stage venture capital. This might not be as smart as it looks, as risk of scaling goes up. Even If It’s Awful for Series A-E Rounds. We just did our latest Workshop Wednesday with Omers Growth, and they only did one growth investment last year.

AWS 309
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Pilot: 57% of Venture Startups Will Need to Raise More In 2024

SaaStr

VCs don’t give startups 10 years of capital. They typically give them just enough to see if it will work, and the startup grows and scales to the next stage. Ultimately, you also have to grow again to raise more venture capital. Shopify , Datadog, Crowdstrike , Google Cloud-Azure-AWS, Snowflake , etc.

Startup 315
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Alteryx, ZoomInfo Have Blow Out Quarters. Datadog grows 74% at $2B in ARR. Ping Identify Acquired for $2.8 Billion. Don’t Call it a Downturn.

SaaStr

And inflation is awful. I’m not saying there isn’t a radical slow down in venture capital, with a ton of valuation compression. . — Jason 2022 SaaStr Annual Sep 13-15 Lemkin (@jasonlk) August 3, 2022. So are we in a downturn in SaaS? Certainly, segments are. But where is SaaS are we really today?

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TAM is Great. But What Really Matters is That You Believe You Can Hit $100m ARR in 7 Years.

SaaStr

How can that scale over time? Does it make sense, and scale, from an input-output perspective? Worth hiring a sales team, raising some venture capital (even a modest amount). What will your ACV really be? What evidence is there that you can charge what you think you’ll be able to? What will it really, truly cost?

Scale 209
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Pitchbook & IVP: Top Tier SaaS Companies Usually Raise at 15x ARR. It Was 114x in 2021.

SaaStr

While the data ends here, here’s what I can tell you I am seeing in growth rounds today: Very few growth rounds are happening at all When the do happen, they are for capital efficient startups growing > 50% at scale And … the peak valuation is about 15x. Even If It’s Awful for Series A-E Rounds.

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State of the Cloud 2019: Europa Edition with Alex Ferrara, Bessemer Venture Partners (Video + Transcript)

SaaStr

Before I joined the venture capital industry many years ago, I was a software developer, and I worked for a startup around the 2000 time period. Retail was mentioned twice, that’s it, and AWS was mentioned 78 times, so it’s probably not surprising that they’re doing this. How long can this last?

Cloud 100
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Scaling Early-Stage to Hyper-Growth Companies With Ed Lenta, SVP and GM of Databricks (Pod 644 + Video)

SaaStr

Scaling Early-Stage to Hyper-Growth Companies With Ed Lenta, SVP and GM of Databricks Back in the early 2000s, people didn’t entirely accept that a virtual machine could be as good as a physical one. Ed Lenta, the SVP and GM of Databricks, had the rare opportunity of scaling three hypergrowth companies — VMware, AWS, and Databricks.

Scale 201