SaaStr

NOVEMBER 5, 2019

Venture capital / equity is expensive. But … with few exceptions, it’s 100% risk capital. But whatever the terms, venture debt is much, much cheaper than equity / venture capital. But the thing is, venture debt has to also be much lower risk. You often have to sell 15%, 20%+ of your company in chunks.

Venture Capital 114

Venture Capital Finance Investment Revenue 114

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. What should VCs make of revenue-based financing? Funding options by stage of growth.

Venture Capital 61

Venture Capital Finance Payments Revenue 61

Baremetrics

APRIL 21, 2021

At Bigfoot Capital , we wanted to know how early-stage companies think about capital as a component of their business. To do so, we decided to ask 30 SaaS Founders their thoughts on raising money and venture capital. Question: What has your experience been in raising capital? Venture Capital.

Venture Capital 71

Venture Capital SaaS Finance Scale 71

SaaStr

SEPTEMBER 3, 2022

Raising venture capital is really, really hard — and only available to a small subset of founders. You can’t get mad or frustrated that you can’t raise VC capital. Expect you’ll only be able to raise VC capital once you prove yourself, either with strong early growth or with an incredible team. A bit more here.

Venture Capital 272

Venture Capital Startup CTO SaaS 272

SaaStr

DECEMBER 26, 2023

The average public SaaS company now has hit $300,000 in revenue per employee or so on average. Venture capital is there to bridge the gap, and let you hire more to go faster. So we’re reaching new levels of efficiency in SaaS — at least in the public markets. This starts to get tough. Few are this efficient today.

Venture Capital 276

Venture Capital Scaling AI Investment 276

SaaStr

SEPTEMBER 9, 2022

When reps want a $160k+ OTE for hitting say a $400k attainment, really, that’s only possible when fueled with a lot of venture capital. Either higher quotas, lower attainment, or for a while, even more venture capital. At least, unless there is a ton of venture capital funding the gap.

Scale 312

Scale Venture Capital Sales Hiring Sales 312

SaaStr

JUNE 17, 2023

In the ever-evolving landscape of SaaS, Venture Capital, Bootstrapping, and Valuations – understanding market trends and investment patterns is critical. By doing so, they’ve maintained steady revenue streams while also enhancing product offerings and customer service capabilities.

Venture Capital 219

Venture Capital Scale Technical Review Software Review 219

SaaStr

OCTOBER 11, 2022

Of paying your sales team well, of not capping sales commissions, of putting customer success on a variable plan, and of the power of second order revenue. We and I are still strong proponents of paying your revenue team well. While that may not sound like a lot, it actually is a lot of all your revenue. xkcd chart from here.

Scale 231

Scale Customer Success Venture Capital Sales 231

SaaStr

FEBRUARY 26, 2022

Public “multiples”, or how much top public SaaS companies are valued at a multiple of revenue, have fallen by half since the peak in Q4’21. Basically, hunker down and carry on — if you have enough capital: * Fundraising has already gotten harder. And we may need to be more capital efficient than we planned. But it’s OK.

Venture Capital 362

Venture Capital Cloud Startup SaaS 362

SaaStr

MARCH 8, 2024

Don’t disguise it in growth and/or venture capital. Rag & Bone is selling to Guess $GES for $56m on ~$250m of revenue. A brand that previously held a premium aesthetic raised a growth round in 2013 from Irving Capital (7 For All Mankind, Aeropostale, Stuart Weitzman), but ultimately wasn’t able to sustain its growth.

Churn 236

Churn Startup SaaS Payments Venture Capital 236

SaaStr

SEPTEMBER 27, 2023

The list of problems is endless (this is one of the hardest parts of the job), but let me try to order a few of the biggest challenges roughly based on stage: Pre-Revenue: Finding a Truly Great Co-Founder That is Just as Committed as You. Then their collective revenues often only add up to Cappuccino money.

Sales Recruiting 262

Sales Recruiting Sales Hiring Startup Scale 262

SaaStr

MAY 26, 2022

Open exclusively to attending post-revenue Founders and CEOs, our SaaStr Europa Meet a VC program matches our attendees with top-tier VCs. Acton Capital. Aldea Ventures, S.A. All Iron Ventures. ALVEN CAPITAL. Armilar Venture Partners. BASF Venture Capital. Battery Ventures. BMC Ventures.

Venture Capital 248

Venture Capital AI Investment SaaS 248

SaaStr

DECEMBER 8, 2019

Q: Why would an investor invest in a pre-revenue company? If you don’t understand it, it’s hard to understand how early-stage venture capital works. The post Why would an investor invest in a pre-revenue company? This is an important question to understand. As long as you could. To see if the team can really do it.

Investment 145

Investment Revenue Venture Capital Pricing 145

SaaStr

OCTOBER 27, 2023

With two caveats… They have to close a significant amount of revenue themselves. If you can’t check all of those boxes that definitely make things a little easier for you, then the only box you can check is revenue. Venture capital is a niche niche niche asset class only designed for outliers.

Sales Hiring 248

Sales Hiring Scale Venture Capital Generative AI 248

SaaStr

OCTOBER 16, 2022

SaaStr 597: VC State of the Market with SaaStr CEO Jason Lemkin and Cowboy Ventures Founder & Managing Partner Aileen Lee. ? ? ?. SaaStr 596: Scaling Revenue in 2022: What’s the Same and What’s Different? Why The Business Model of Venture Capital is Really, Really Hard. appeared first on SaaStr.

Venture Capital 274

Venture Capital Business Model B2B Startup 274

Tom Tunguz

DECEMBER 13, 2022

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. When capital is scarce, it’s rationed. In the 2010s, US venture capital grew 40x in 10 years. In 2021, employment costs per capital increased to roughly $200k.

Headcount 303

Headcount Venture Capital Finance Startup 303

SaaStr

DECEMBER 7, 2020

“How Would a Person Start a Venture Capital Fund?” More details on why and how here: How would a person start a venture capital fund? “How Bridge Rounds Work in Venture Capital: Messy, Full of Drama, and Not Without High Risk.” Even If It Isn’t Revenue.” ” Maybe.

Venture Capital 328

Venture Capital Sales Hiring AWS Cloud 328

Predictable Revenue

JULY 8, 2021

Kyle Lacy CMO at Lessonly talks about lessons learned while working at a venture capital firm, during an IPO, and through an acquisition by one of the largest software companies in the world to drive revenue. The post Who BDRs report to & where growth comes from at Lessonly appeared first on Predictable Revenue.

Venture Capital 191

Venture Capital Acquisition Revenue Software 191

SaaStr

JUNE 1, 2023

The company is trusted by more than 30,000 companies, over 5,000 investment funds, and half a million employees for cap table management, compensation management, liquidity venture capital solutions, and more. Our vision is a world where everyone has the power to innovate without limits. SAP for Startups? It’s an unexpected story!

Scale 193

Scale Payments Payment Solutions Artificial Intelligence 193

SaaStr

DECEMBER 11, 2022

Where Venture Capital Really is Right Now, With Accel, Iconiq Growth, and Salesforce Ventures at G2 Reach. SaaStr 615: Where Venture Capital Really is Right Now, With Accel, Iconiq Growth, and Salesforce Ventures at G2 Reach.   . MongoDB and HashiCorp have raced to record quarters.

Scale 180

Scale Venture Capital Sales Forecasting 180

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 209

Venture Capital Marketing Startup Construction 209

SaaStr

SEPTEMBER 30, 2022

Let’s all be clear, 2021 was insane: * SPACs worth billions with no revenue * Multiples magically tripled * Fintechs with 10% GMs worth same as 80% GMs * #5 in market got same premium as #1 * Growth stage seen as free money * Seed VCs bought in $3B-10B rounds vs sell. All your revenue in low-margin fees? No one cared. It really did.

Venture Capital 257

Venture Capital Innovation Acquisition Cloud 257

SaaStr

FEBRUARY 5, 2023

SaaStr 631: What Is Going On In Venture Capital in 2023 with SaaStr Founder Jason Lemkin and 20VC Host Harry Stebbings    4. SaaStr 628: Revenue Alignment: How to Pull Marketing, Sales, and Customer Success Together with Divvy CRO Sterling Snow  5.

Sales Recruiting 190

Sales Recruiting Sales Hiring Scale Venture Capital 190

SaaStr

JANUARY 15, 2023

Yes, There’s Lots of “Dry Powder” in Venture Today. SaaStr 624: Investing and Venture Capital in 2023 with SaaStr Founder and CEO Jason Lemkin and Atrium Founder and CRO Pete Kazanjy. . Accel, Iconiq & Salesforce Ventures: “Where Venture Is Right Now: Gritty & Much Harder” at G2 Reach.

Scale 228

Scale Venture Capital Sales Hiring Scaling 228

SaaStr

JANUARY 13, 2023

They usually come in and handle compliance and oversight for an existing finance team that perhaps lacks the seasoned experience to handle models, venture capital and debt, prepare for an audit, etc. They aren’t just a strategist, they actually own the revenue or pipeline commit. But Fractional CFOs are often different.

Sales Hiring 302

Sales Hiring Venture Capital Scale Finance 302

SaaStr

FEBRUARY 19, 2023

SaaStr 635: CRO Confidential: How Customer-First Focus Drives Retention and Revenue With Brex GM of Startups Lucas Fox   3. SaaStr 631: What Is Going On In Venture Capital in 2023 with SaaStr Founder Jason Lemkin and 20VC Host Harry Stebbings                     Top Videos This Week: 1.

Scale 201

Scale Venture Capital Startup Retention 201

Tom Tunguz

AUGUST 26, 2023

The company raised $455m in venture capital, but has used only $15m, growing nearly entirely on profits. Metric at IPO KVYO BRZE Primary Motion PLG SLG Revenue Growth 54% 52% Revenue, $m 585 185 Gross Margin 77% 72% ACV, $k 4.5 Est. Sales Efficiency 1.04

Benchmarks 167

Benchmarks Venture Capital Marketing SMB 167

SaaStr

DECEMBER 25, 2022

SaaStr 615: Where Venture Capital Really is Right Now, With Accel, Iconiq Growth, and Salesforce Ventures at G2 Reach.              . How to Get the Most Out of Your Entire Revenue Motion with Salesloft CMO Lauren Vaccarello. Top Videos This Week: 1.

Scale 199

Scale Venture Capital SMB Scaling 199

SaaStr

MARCH 27, 2023

One, when you have really high gross margins, your cost base actually increases much slower than your revenue base. Revenue growth is the Rule of 40 and you want that number to be above 40% generally. If you need to raise venture capital, preparation is important, both in terms of process and in terms of expectation alignment.

SaaS Payments 202

SaaS Payments Technical Review Software Review Venture Capital 202

Tom Tunguz

AUGUST 26, 2023

The company raised $455m in venture capital, but has used only $15m, growing nearly entirely on profits. Metric at IPO KVYO BRZE Primary Motion PLG SLG Revenue Growth 54% 52% Revenue, $m 585 185 Gross Margin 77% 72% ACV, $k 4.5 Est. Sales Efficiency 1.04

Benchmarks 153

Benchmarks Venture Capital Marketing SMB 153

SaaStr

JULY 21, 2022

VC State of the Market with SaaStr’s CEO and Cowboy Ventures. Jason Lemkin, Founder & CEO @ SaaStr and Aileen Lee, Founder & Managing Partner @ Cowboy Ventures sit down to discuss the current state of venture capital. Scaling Revenue in 2022: What’s the Same and What’s Different?

Venture Capital 260

Venture Capital Enterprise Cloud Pricing 260

SaaStr

JULY 31, 2022

The 10x Rule: What Raising $1 of Venture Capital Really Means. SaaStr 572: 10 Mistakes in Building Out Your Revenue Organization: A CEO’s Perspective with Insider CEO Hande Çilingir. A deep dive on how to build out your revenue org from unicorn Insider’s CEO Hande Cilingir. A 2:1 split is most common.

New CTO 255

New CTO CTO SMB Venture Capital 255

SaaStr

MARCH 27, 2022

Salesforce is on track to $20 billion in revenue and closing in on a $100b market cap. Today, it’s coming up on $2b in revenues. Venture capital is incredibly important, and for many of us, a huge enabler of success. It was especially rough working in venture capital. Yes, markets today are small.

Scale 361

Scale Sales Hiring Venture Capital Startup 361

SaaStr

NOVEMBER 17, 2022

The Bank also offers venture banking products including a comprehensive suite of financial services focused on entrepreneurial and venture-backed businesses and their venture capital and private equity investors, with offices located in key innovation hubs across the United States. appeared first on SaaStr.

Banking 231

Banking Payment Features Venture Capital Subscription 231

SaaStr

NOVEMBER 13, 2022

I’ve invested in 2 startups where they initially got to millions in revenue, but the market then told them they had to do … even more. Competition Raised Far More Venture Capital. You just can’t count on more VC money magically coming in. Especially if you are struggling. Not willing to iterate enough. Too much churn.

Startup 209

Startup Venture Capital Scale Churn 209

SaaStr

MAY 25, 2023

Because the reality is, acquisition offers at a decent price — as measured against revenue, time, and effort — actually come at distinct phases of your company’s lifetime. Here’s what happens: Pre-Revenue – You Aren’t Interesting. Even if you don’t have nearly the revenue of the next guy.

Acquisition 361

Acquisition Venture Capital Generative AI Scale 361

Tom Tunguz

APRIL 27, 2022

Startups were priced first on forward-revenue multiple. Sum the next-twelve months of projected revenue, tabulate the public comps’ forward multiple, and multiply. Forward revenue multiples gave way to forward ARR multiples. They are the run rate of a business, not recognized revenue.

Startup 250

Startup Venture Capital Pricing Investment 250