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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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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. Here’s How & What That Means.

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Raising Venture Capital in 2024? The Air is Very, Very Thin Above $200,000,000 Valuations

SaaStr

If I had to summarize venture capital today, it would be like this: There is Very Little Oxygen Today Above $200m Valuations What do I mean? It’s still a weird world in venture: Firms are both shutting down and raising new funds. More entrepreneurs are doing direct investing themselves than ever. But Series D? -41%.

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Dear SaaStr: Is Late-Stage Venture Capital More Stressful than Early-Stage Venture Capital?

SaaStr

Dear SaaStr: Is Late-Stage Venture Capital More Stressful than Early-Stage Venture Capital? If you do late stage investing … well, every company you invest in is pretty darn good and growing nicely. In SaaS, growth investments generally will all be at at least $20m ARR, or $40m ARR, or more.

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Venture Capital, Withering & Dying

Tom Tunguz

Amy Cortese published “Venture Capital, Withering & Dying” in the New York Times on Oct 21, 2001. Venture capital funds lost 18.2 percent, on average, for the 12 months ended June 30, according to Venture Economics, while Internet-specific funds were down 27.7

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Dear SaaStr: Is 5 Co-Founders Too Many When Raising Venture Capital?

SaaStr

Dear SaaStr: Is 5 Co-founders Too Many When Raising Venture Capital? My first venture investment was Pipedrive, it had 5 co-founders and sold for $1.5 10 Years of Investing pic.twitter.com/zsSupe0CRP — Jason ✨Be Kind✨ Lemkin  ?? But it will also clean-up the company for most VC firms to invest.

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Dear SaaStr: We Don’t Need It. Should We Still Go After Venture Capital, and When?

SaaStr

Should We Go After Venture Capital, and When? There are only two reasons to raise Venture Capital: You need it. If the only way you can get to the next level is to raise capital, then do it. Venture capital is very expensive in the early days, in terms of dilution. Dear SaaStr: We Don’t Need It.