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Dear SaaStr: How are Funds Invested by Venture Capital Firms?

SaaStr

Dear SaaStr: How are Funds Invested by Venture Capital Firms? It varies of course, but roughly for bigger funds: Funds tend to invest in 20–40 startups over 2–4 years. Another way to see the math is that most funds put 1%-2% of “the fund” into each investment — initially. appeared first on SaaStr.

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Passive Investing in Venture Capital and the Parallels to Public Equities

Tom Tunguz

Passive venture capital investing is a relatively new idea. As later stage investors permeate venture capital, they are amassing index funds of startups. If the public equities market is any indication, passive investing is here to stay. Classically, venture capital has been an active asset class.

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Why 2024 May Be Tougher on Venture Capital Than 2023

SaaStr

jasonlk) January 23, 2024 So I thought the toughest times for venture would be behind us now. The one place where paper money seems easy to come by is Hot AI Startups. It’s just consuming all the oxygen in venture, trying to get into the next Imaging AI startup worth $1B in 10 months. They’re just tough.

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Dear SaaStr: What are The Top Challenges of Venture Capital Firms?

SaaStr

Dear SaaStr: What are The Top Challenges of Venture Capital Firms? If you can’t raise another fund, you get paid at least something to manage your existing investments for 10+ years. Challenge #3: Not Doing “Pretty Good” Investments. Just as common though is investing in “pretty good” companies. Probably … not.

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Dear SaaStr: What Is The Job of a Venture Capital Fund Manager?

SaaStr

Dear SaaStr: What Is The Job of a Venture Capital Fund Manager? Otherwise, their own investors (the LPs) should just invest in … Nasdaq. Net net, this means returning at least 3x the capital they are given to invest. Roughly: Source new investments. Roughly: Source new investments.

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The Pros and Cons Of Working in Venture Capital

SaaStr

Q: What are the pros and cons of working in the venture capital space, and why? I’ll list the pros and cons, but before we get there, it’s important to note a few things: Venture Capital is a tiny industry. There are very limited promotion paths in venture. Only the very best startups matter — in venture.

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How Venture Capital Has Changed Since Covid-19

SaaStr

Q: How is Venture Capital difference since Covid-19? Portfolios in many cases were hit hard, with startups in travel, events, fitness, etc. Every fund one way or another got used to investing over Zoom. At first, funds invested in founders they already knew. SaaStr New New Venture 2020. That was easy.