article thumbnail

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.

article thumbnail

Why 2024 May Be Tougher on Venture Capital Than 2023

SaaStr

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. That will weigh across venture. The Chase for AI Unicorns and Decacorns is All-consuming. It’s Still 2021 There.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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. Classically, venture capital has been an active asset class. There isn’t a one-to-one mapping of growth capital and passive venture capital.

article thumbnail

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

SaaStr

Dear SaaStr: What are The Top Challenges of Venture Capital Firms? Not Just Billion Dollar StartUps. The post Dear SaaStr: What are The Top Challenges of Venture Capital Firms? Generally there are three major challenges. The first one is non-obvious. Challenge #1: Raising Another Fund. appeared first on SaaStr.

article thumbnail

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. The post Dear SaaStr: How are Funds Invested by Venture Capital Firms? Big and tiny funds may do more, but in general, this is the sweet spot.

article thumbnail

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? Net net, this means returning at least 3x the capital they are given to invest. So meeting new startups is just part of it. The post Dear SaaStr: What Is The Job of a Venture Capital Fund Manager? It’s liquid and full of great tech companies!

article thumbnail

The Bid/Ask Spread in Venture Capital

Tom Tunguz

I wish I had a chart of the bid/ask spread in venture capital today. Many startups sell shares to buyers at mutually attractive prices. A startups who had verbal offers in Q1 at $500m may expect to raise at $450m. In the past few years, the spread has been tight. The market is liquid.