Tom Tunguz

DECEMBER 13, 2023

The typical software startup raised their Series A 15 months after raising their seed at 2x their seed valuation. Here’s another way of visualizing the data. The public valuation environment & pace of venture capital investments mirror those years better than others. the valuation.

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Venture Capital Startup Investment Software 285

Tom Tunguz

AUGUST 20, 2023

The post-Covid surge in venture capital pushed valuations & activity to record breaking heights. The red is a linear model based on data from 2010 to 2018 that predicts activity rates for each financing series of US & Canadian software companies. [1] Since then, investing activity dropped precipitously.

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Investment Venture Capital Startup Finance 196

Tom Tunguz

MARCH 13, 2024

Tomasz Tunguz : A data-driven blog focused on the most important questions for startups & venture capital.

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Venture Capital Startup Data 160

Tom Tunguz

DECEMBER 13, 2022

A funny thing happened along the way to Sand Hill Road in the last decade : startups stopped talking about how much runway a Series A would buy them. In the 2000s, when capital was scarcer, founders & VCs would derive round size by debating the quantum of money required to achieve Series B milestones. Median Employees at A.

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Headcount Venture Capital Finance Startup 305

Tom Tunguz

JULY 22, 2014

This new money hasn’t yet hit the startup fundraising market in earnest, as the chart above shows. The second quarter of 2014 is the sixteenth largest by capital deployed sinced 1995, making it a top quartile quarter, but to break into the top five, that figure would need to triple. Which rounds should become easier to raise?

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Venture Capital Startup Banking Trends 100

OPEXEngine

JANUARY 28, 2020

As Chief Credit Officer at Lighter Capital, I work behind the scenes grappling with the data that informs all of our decision-making regarding financing deals, from revenue-based financing (RBF) to term loans and lines of credit. Is RBF simply an alternative to venture capital funding?

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Venture Capital Finance Payments Revenue 61

SaaStr

FEBRUARY 24, 2023

The venture capital firm’s mission is to be “entrepreneurs backing entrepreneurs.” For most SaaS startups, 60-75% of the costs are personnel related. Over the last ten years, ICONIQ Growth has partnered with over 90 companies, seeing them grow through critical phases.

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Scale Sales Hiring Scaling Venture Capital 219

Kellblog

MAY 8, 2019

Every so often I post highlights from the quarterly Fenwick & West Venture Capital Survey , as much to share knowledge about the existence of the survey [1] as to share its current-quarter data. If you’re a CEO or founder of a startup and don’t understand the prior sentence, you need to. to 1.75x to 2.0x

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Venture Capital Finance Pricing Startup 74

SaaStr

AUGUST 28, 2023

That’s probably about 20%-30% of them, based on rough data I can see at SaaStr. All of a sudden, massive changes had to be made when it was clear another round of venture capital was never coming. VCs stopped pushing, pushing, pushing for ever higher growth, and basically left startups alone that weren’t burning much.

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Venture Capital AI Startup Mobile 225

Tom Tunguz

NOVEMBER 17, 2022

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. The Decade of Data is just a few years in & already it has transformed the way we do business.

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Venture Capital Machine Learning Artificial Intelligence Innovation 195

SaaStr

FEBRUARY 5, 2023

Today’s Startups Need Both with Jason Eubanks, CRO at Harness  2. SaaStr 631: What Is Going On In Venture Capital in 2023 with SaaStr Founder Jason Lemkin and 20VC Host Harry Stebbings    4. The Data Behind Staying Away from Freemium and Focusing on Premium with Payhawk Founder + VPM 3.

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Sales Recruiting Sales Hiring Scale Venture Capital 207

SaaStr

SEPTEMBER 26, 2023

The Most Surprising Thing About VC This Year Shen has been in venture capital for 12 years now, and it’s been a crazy ride to watch the whole bull market back in ‘10 and ‘11 when 10x revenue was insanely expensive for a SaaS company. Building a data moat dramatically enables your ability to win on: More ease of use.

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AI Generative AI Venture Capital SaaS 264

SaaStr

JANUARY 22, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: 5 Interesting Learnings from Docebo at $145,000,000 in ARR Fractional CROs and CMOs: The Only Times I’ve Ever Seen Them Work 90%-95% of Salespeople Won’t Make It At Your Startup. A 6 Part Test to Help You Get It Right.

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Scale Customer Success Venture Capital Sales Hiring 207

SaaStr

MARCH 27, 2022

Instead, it sort of makes you think about taking the First Good Offer for your startup. Both in starting something new, or just a new big initiative, anything big … well, carefully collect data. There are 1000s of startups but only a handful of great opportunities for most of it. Startups are hard. To lose it all.

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Scale Sales Hiring Venture Capital Startup 361

Tom Tunguz

JULY 15, 2017

The article pointed to the seeming collapse in the amount of venture capital raised by San Francisco startups relative to other regions. The slowing of venture investment more broadly across the US serves as a backdrop to San Francisco’s particularly strong correction. The data doesn’t support that hypothesis.

Investment 196

Investment Startup Venture Capital Trends 196

Tom Tunguz

MAY 23, 2021

While not as hyperbolic an inflation rate as copper or lumber, the price trajectory of early stage cloud startups does result from a similar supply demand/imbalance. In 2021, the post-money valuation has spiked 60% from $48.1m And this isn’t the first time annual valuation deltas have touched this magnitude.

Software Review 364

Software Review Venture Capital Cloud Pricing 364

Point Nine Land

OCTOBER 25, 2023

general-purpose tools, a number of startups are challenging the incumbents with very cool and innovative products, e.g. beautiful.ai For categories with an existing SaaS champion, one of the questions is what kind of data the existing player(s) have access to. Where are the opportunities for new startups in generative AI?

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Generative AI AI Artificial Intelligence Startup 122

Scytale

JANUARY 22, 2024

In the modern business landscape, compliance is not just a buzzword but a fundamental requirement, essential for evaluating a startup’s capability to offer risk-free, reliable, and trustworthy services. Here’s why businesses (especially startups) must prioritize it from day one. But there’s a catch.

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Payment Services compliance Startup SaaS Payments 52

SaaStr

MAY 23, 2022

But public stock prices are way down, and venture capital is much tighter than it was just a few months ago. An L4M speaks with data, and it projects your revenue and burn rate more accurately than a “wish and a hope” model. Too many startups are better at closing deals than collecting the cash. More on that here.

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Sales Hiring Management Airlines Venture Capital 287

Tom Tunguz

FEBRUARY 25, 2019

Since that trip, when I visited RenRen, Autonavi and a few other blossoming startups, the Chinese startup ecosystem has grown tremendously. Chinese startups raise nearly half of all venture capital dollars and nearly 100 are valued at $1B. Second, China will have more data.

AI 145

AI Startup Machine Learning Artificial Intelligence 145

SaaStr

APRIL 25, 2022

So now is an odd time for SaaS startups: The best are growing faster than ever. Be aware the data we see on Crunchbase and other sources and in most press releases and announcements is still a quarter behind here. Venture Capital seemed like a game in '20-'21. Will see how it plays out. jasonlk) April 25, 2022.

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Venture Capital Investment Startup Pricing 241

SaaStr

SEPTEMBER 15, 2021

They started off as two young founders who loved building a database of data, and then plugged a little bit of email into it. This conversation was candid as ever and Jason debunked the ease that startups and venture capital are often portrayed with. Like I was interviewing the CEO of $9.5

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Entrepreneurship Venture Capital Interviewing Cloud 216

Tom Tunguz

MARCH 31, 2016

Q1 venture capital investment remains steady relative to Q4 2015 at about $15 billion, but down from the near records attained in 2015. So, on a historical basis, venture capitalists are still investing at rates substantially above average. However, that contraction effects only a small number of startups.

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Trends Investment Startup Venture Capital 100

Baremetrics

MAY 7, 2019

There are more funding and financing options for startups today than there ever have been before. There’s also been an explosion in debate and transparency about navigating startup funding and financing. Let’s explore the funding and financing options for your startup. Funding Your Startup. Buffer spent $3.3

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Finance Startup SaaS Payments Payment Methods 111

Kellblog

MAY 24, 2022

Here are some of the things we discussed on the podcast : If you think of startups are organisms that convert venture capital (VC) into ARR, then we need some metric for how efficiently they do that. On IRR, Bessemer companies with a ratio of <1x had an IRR of 120%, 1-2 had an IRR of 80%, and 2-4 had an IRR of 40%.

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Metrics Venture Capital Benchmarks Finance 103

SaaStock

MARCH 8, 2019

Because, as she says, building a startup is simply much more fun. Today Carman is Founder and Managing Partner of Click Ventures, the globally renowned Hong Kong venture capital firm. She has been around the globe, working in startups and digital agencies in Brazil, Germany, Southeast Asia, and Hong Kong.

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VP of Engineering CTO Coach Venture Capital SaaS 264

Tom Tunguz

JUNE 21, 2015

throughout those cycles, venture capital has flourished from a cottage industry into $100B per year asset class. VCs are on track to invest as much capital this year as during the height of the dot com era. But, is there any observable relationship between the federal funds rate and the startup ecosystem?

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Venture Capital Startup Investment Trends 100

Tom Tunguz

JANUARY 10, 2016

For all the talk about late stage rounds, megarounds and unicorns, early stage startups are benefitting disproportionately from near-record years of venture capital investment. Of the $42B invested in startups in 2015, 34% or about $14B was raised in series A and seed rounds. That figure is up from 18% in 2005.

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Venture Capital Startup Marketing B2C 100

Tom Tunguz

NOVEMBER 4, 2017

Initial Coin Offerings, a fundraising mechanism for companies using cryptocurrencies as a mechanism to buy their service, seem to be upending the world of venture capital. Recently, I’ve been wondering how prevalent ICOs are and whether they could potentially be a substitute for venture capital. Tezos raised $232M.

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Venture Capital Startup Trends Development 189

Sales Hacker

JANUARY 22, 2024

Max Altschuler is the Founder and General Partner of GTMfund , an early-stage fund focused on B2B SaaS startup backed by the world’s best tech GTM leaders. 20:34) The flight to quality in Venture Capital. He then took over as VP of Marketing for rapidly growing Outreach. 02:18) Reflecting on GTMfund’s 2023 year. (04:30)

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Venture Capital Technical Review AI Acquisition 81

SaaStr

JUNE 30, 2023

When I look at the purpose of venture capital, it’s not to burn a dollar five in order to grow a dollar of revenue,” says Magnuson. Key Takeaways If you’re looking for opportunity in headwinds and want to scale your startup, take these words of wisdom from Braze CEO & Co-Founder Bill Magnuson. Change creates opportunity.

Scale 210

Scale Mobile Venture Capital Scaling 210

User Pilot

JUNE 13, 2022

We covered the best blogs on SaaS growth, product marketing , UX analytics, venture capital, and sales. The Signal by Mixpanel is all about using data to build better products and help you convert, engage, and retain more users. The Brad Feld blog is one of the best venture capital blogs dedicated to entrepreneurs and investors.

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Venture Capital SaaS Data Scale 52

Kellblog

JUNE 27, 2022

Bernard , Suranga , Alice , Rob ) as well as my other European startup colleagues (e.g., The US poses numerous, often unique, challenges for a European technology startup. Bob Seiner and Non-Invasive Data Governance ). This series was both a lot of work and a lot of fun. The market is vast. Segmentation strategies are critical.

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Startup Sales Hiring Underperforming Technical Team Compensation 116

Baremetrics

SEPTEMBER 24, 2021

What is the difference between Equity Financing, Loans, and Venture Capital Funding? Venture Capital Funding When should you be thinking about Equity Financing? What is the difference between Equity Financing, Loans, and Venture Capital Funding? Table of Contents. What is Equity Financing in SaaS?

Finance 98

Finance Venture Capital SaaS Payments Payments 98

SaaStock

JANUARY 30, 2019

A healthy availability of capital is one. We looked at the data and discovered a few vital moments in the funding history of the region. 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.

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Venture Capital SaaS Healthcare Finance 155

Clouded Judgement

JANUARY 12, 2024

Setting the stage for our convo was the increase in startups either shutting down or being acquired / acquihired recently. If we rewind the clock back to 2021, the venture funding market went crazy. In venture markets, I think we’re only 10% into the pain that we’ve delayed given the large cash balances of startups.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

Tom Tunguz

JUNE 11, 2017

Assuming investors purchase the same ownership stake for their investments in each of these rounds, this data implies the market is paying premium valuations again for SaaS companies. In 2016, venture capitalists reduced their investment in staff companies by 1 ⁄ 3 , falling to $2.8 The only exception is in the Series C.

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Venture Capital SaaS Trends Startup 190