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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. It becomes mathematically very hard to make 8x-10x on any valuation in SaaS above $200m post-money.

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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? In SaaS, growth investments generally will all be at at least $20m ARR, or $40m ARR, or more. You’re often betting on a $10B+ IPO, and that’s just pretty darn rare these days in SaaS and Cloud.

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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 Venture capital is a business of outliers, but it also involved a lot of pattern-matching, for better or worse. Yes, it can work. Just a little bit.

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The 10x Rule: What Raising $1 of Venture Capital Really Means

SaaStr

Especially now in 2022, when venture capital again is scarcer, and more expensive, and far harder to close than it was during the go-go times for SaaS of 2021 and late 2020. Does this make venture evil or something because these deals probably didn’t make all the founders multi-millionaires? the amount raised.

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Why 2024 May Be Tougher on Venture Capital Than 2023

SaaStr

And public SaaS stocks in many cases did really, really well in 2023. So shouldn’t 2024 at least be better for venture? But the reality is I’m a bit more worried the venture drama in 2024 will be bigger than 2023. That will weigh across venture. It got real in 2023, and that realness got normalized.

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Dear SaaStr: When is a Startup Ready to Raise Venture Capital These Days?

SaaStr

Dear SaaStr: When is a Startup Ready to Raise Venture Capital These Days? Churn too high Burn too high Competitors growing faster Already raised “too much” capital The post Dear SaaStr: When is a Startup Ready to Raise Venture Capital These Days? A lot harder. appeared first on SaaStr.

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Do You Really Need Venture Capital To Build A Top SaaS Company?

SaaStr

Q: How many companies in the Fortune 500 raised venture capital? Why are so many people obsessed with venture capital when many successful businesses didn’t raise it? There are many successful companies that did not raise venture capital, and VC does seem to get a bit too much media attention. 7 out of 100.