Tom Tunguz

JUNE 5, 2021

What does it mean for venture capital and Startupland? Let’s examine the relationship between total venture capital investment and the 10 year Treasury in some detail. As the interest rate approaches zero, venture capital spend approaches infinity. In short, we should expect some cooling.

Venture Capital 353

Venture Capital Marketing Investment Government 353

Tom Tunguz

JULY 17, 2022

I wish I had a chart of the bid/ask spread in venture capital today. The bid/ask spread in VC is the difference between the post-money valuation between a VC (the bidder) & a company (seller). In the past few years, the spread has been tight. The market is liquid. Many startups sell shares to buyers at mutually attractive prices.

Venture Capital 214

Venture Capital Startup Engineering Pricing 214

SaaStr

MARCH 9, 2021

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. Whatever you do, don’t romanticize it.

Venture Capital 288

Venture Capital Startup Investment Finance 288

SaaStr

MAY 19, 2023

You can’t make money in venture unless you have companies that get to $100M or $200M in revenue within seven to ten years. Understanding what venture capital firms are looking for helps you make the best decisions for your specific company. Pay attention to multiples to get a pulse on venture capital.

Venture Capital 195

Venture Capital SaaS Management Revenue 195

SaaStr

AUGUST 16, 2020

Q: How is Venture Capital difference since Covid-19? SaaStr New New Venture 2020. The post How Venture Capital Has Changed Since Covid-19 appeared first on SaaStr. At first — and only briefly — things slowed way back. Portfolios in many cases were hit hard, with startups in travel, events, fitness, etc.

Venture Capital 289

Venture Capital Cloud Startup Investment 289

SaaStr

AUGUST 1, 2021

Q: Dear SaaStr: What Happens and Changes After You Raise Venture Capital for the First Time? A few thoughts if you haven’t raised venture capital before: 1. The post Dear SaaStr: What Happens After You Raise Venture Capital for the First Time? Remember you have to prove yourself, still.

Venture Capital 290

Venture Capital Metrics Data 290

SaaStr

DECEMBER 3, 2022

G2 put on its big annual digital event, G2 Reach , this week and we were lucky enough to host what ended up being a simply amazing session on the real state of venture capital right now. But it’s one of the deepest and most on-point dives on venture today I’ve seen in a while. (@jasonlk) December 2, 2022.

Venture Capital 225

Venture Capital SaaS Investment Startup 225

SaaStr

MAY 26, 2020

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.

Venture Capital 222

Venture Capital SaaS Cloud Retention 222

SaaStr

APRIL 24, 2021

Q: Is venture capital really necessary to do a start-up? Atlassian never raised any primary capital and waited many years until raising money at all for secondary liquidity. The post Do I Need To Raise Venture Capital At All? Maybe it isn’t. It will soon be worth $15B+. And he’ll be worth $5B+. A bit more here.

Venture Capital 279

Venture Capital SaaS Revenue Scaling 279

SaaStr

DECEMBER 27, 2020

Q: How do Venture Capital Firms really feel about founder salaries? Let me add just one thought to the discussion on founder salaries, once you are venture-backed. The post One Simple Rule On How Much To Pay Yourself Once You Raise Venture Capital appeared first on SaaStr. 10k a year. 10k a month.

Venture Capital 292

Venture Capital Compensation Scaling Engineering 292

Tom Tunguz

OCTOBER 10, 2020

Each quarter, a group of analysts, including me, publish analysis on the trends in the venture capital market. There’s a risk to those assessments: the data is incomplete since not all rounds founders close within a quarter are reported in that quarter. I was curious about how much variance exists in the data.

Venture Capital 300

Venture Capital Investment Trends Data 300

SaaStr

FEBRUARY 4, 2021

The post New SaaStr University FREE Course: The Secrets to Fundraising and Venture Capital appeared first on SaaStr. We’ve assembled many of the best SaaStr posts on raising money, working with investors, and more … updated the content … and added great videos from top SaaS VCs.

Venture Capital 228

Venture Capital SaaS 228

SaaStr

MAY 6, 2020

The post What’s Really Happening in Venture Capital, Right Now appeared first on SaaStr. Taking a risk on a smaller check and thus a somewhat earlier stage start-up with a lower valuation is often easier in more challenging times.

Venture Capital 249

Venture Capital SaaS Cloud Startup 249

SaaStr

FEBRUARY 3, 2023

After several years of booming business in SaaS, the world of fundraising nearly gave everyone whiplash when capital stopped flowing as freely in 2022 as it did in 2021. So, what exactly is happening in the venture capital world, and what do startup founders need to know? They’re just going to get a little bit better.”

Venture Capital 202

Venture Capital SaaS B2B Startup 202

SaaStr

MARCH 22, 2020

Sign up here to join Byron and me on Thursday at 12:15pm where we do a deep dive on what’s going on in venture capital, fundraising and Cloud right now. The post Webinar: What’s Going On in Venture Capital Right Now with Byron Deeter, Bessemer Venture Partners appeared first on SaaStr.

Venture Capital 202

Venture Capital SaaS Cloud Investment 202

SaaStr

APRIL 4, 2020

The post Why Do Some People Consider Venture Capital a “Young Person’s Game”? So starting before 30 can help. That way, you peak around 45-50. It’s not necessary. But it has been the Sequoia way for a reason. appeared first on SaaStr.

Venture Capital 214

Venture Capital SaaS Investment Compensation 214

SaaStr

OCTOBER 28, 2020

He said the biggest change in venture capital wasn’t investing over Zoom, or Cloud multiples, or even the pace of investing today. No, the biggest change in Venture Capital in 2020-2021 is what he called “The Postmates Effect” That Postmates was arguably #3 to Doordash and UberEats, and still was worth billions.

Venture Capital 213

Venture Capital SaaS Cloud Investment 213

SaaStr

MARCH 27, 2020

The post The Current State of Venture Capital and Cloud with Byron Deeter, Bessemer Venture Partners appeared first on SaaStr. Full schedule to follow in the coming days, but you can sign up now to save your spot.

Venture Capital 226

Venture Capital Cloud SaaS Investment 226

SaaStr

JANUARY 28, 2019

The post How do corporate venture capital firms different from conventional venture capital firms? So generally speaking, corporate VC is best at ownership stakes < 5%. That controls for the downsides and lets you maximize the benefits. View original question on quora. appeared first on SaaStr.

Venture Capital 124

Venture Capital Investment Strategy 124

Tom Tunguz

JULY 22, 2017

It’s wonderful to see the expansion of venture capital across these geographies and especially at very healthy growth rates. A 50% growth rate sustained over 6 years implies 11x growth in venture capital investment during the period. Brazil, United Arab Emirates, and Ireland follow at four, fix and six.

Venture Capital 187

Venture Capital Marketing Development Startup 187

SaaStr

JANUARY 11, 2023

The post Investing and Venture Capital in 2023 With SaaStr Founder/CEO Jason Lemkin and Atrium Founder/CRO Pete Kazanjy (Pod 624 + Video) appeared first on SaaStr. Find an experienced investor who you feel a connection with and who believes in your vision.

Venture Capital 189

Venture Capital Investment SaaS Entrepreneurship 189

SaaStr

SEPTEMBER 9, 2022

During an enlightening session at SaaStr Europa 2022, Zach Coelius (Managing Partner at Coelius Capital) and Tiffany Luck (Investor at GGV Capital) share the secrets and lesser-known players in the world of venture capital. VC Associates. Remember, it’s a two-way street. Ask how they can help you (intros, feedback, etc.).

Venture Capital 217

Venture Capital Metrics Management Investment 217

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 119

Venture Capital Finance Revenue Investment 119

SaaStr

FEBRUARY 22, 2020

Q: Why has Skype co-founder Niklas Zennstrom’s venture capital firm raised over 800 million to back European startups? The post Why has Skype co-founder Niklas Zennstrom’s venture capital firm raised over 800 million to back European startups? It sounds like about the right amount. Sometimes, a lot more.

Venture Capital 149

Venture Capital Startup Investment 149

Tom Tunguz

APRIL 16, 2023

In The Figures that Will Move the Venture Capital Market in the Next 3-5 Years , I wrote about the correlation between interest rates & venture capital investing. The correlation is strong enough to build a simple prediction of early stage venture capital activity in 2023. correlation to -0.51.

Venture Capital 260

Venture Capital Marketing Government Investment 260

SaaStr

NOVEMBER 13, 2019

Q: How do venture capital firms determine when and how to help stalled or stuck portfolio companies? The post How do venture capital firms determine when and how to help stalled or stuck portfolio companies? It is a super interesting topic more should be written about. Most VC firms do plan for some tough times.

Venture Capital 171

Venture Capital Metrics Investment 171

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 59

Venture Capital SaaS Finance Sales 59

Tom Tunguz

MAY 22, 2016

To thrive, venture capital firms must perform three things well: raise capital from limited partners, source companies to invest in, and pick the best opportunities. Historically, each of these three activities has been highly centralized in a small partnership often perched on Sand Hill Road. But new networks are changing this.

Venture Capital 108

Venture Capital Investment Startup Business 108

SaaStr

JUNE 20, 2019

The post How Bridge Rounds Work in Venture Capital: Messy, Full of Drama, and Not Without High Risk appeared first on SaaStr. Then they make a few bad hires, have a tough quarter, get behind on collections, etc. and … they do. Make sure you know who will be in and out. Knowing — and Sharing — Your Zero Cash Date.

Venture Capital 233

Venture Capital Pricing Finance Investment 233

SaaStr

JULY 24, 2022

But once you raise venture capital especially, it something to at least understand better. Even once you raise venture capital, you generally only sell so much, and give up so many board seats, in 1 or 2 rounds. But after several rounds of venture capital, your VCs often control the board. Fairly low.

Startup 270

Startup Venture Capital CTO Investment 270

SaaStr

JANUARY 5, 2020

Q: How hard is it to raise venture capital? The overall odds of raising venture capital may be 0.05%. The post How hard is it to raise venture capital? If you have solid traction and a great team, are your chances significantly higher than 0.05% and will you find at least one investor if you keep hustling?

Venture Capital 134

Venture Capital SaaS Metrics Investment 134

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.

SaaS 324

SaaS Sales Venture Capital Enterprise 324

OPEXEngine

JANUARY 28, 2020

Is RBF simply an alternative to venture capital funding? Companies can use RBF instead of working with VCs, but often, RBF is highly complementary to venture capital funding. Those who eventually seek venture capital funding very often find that VCs are then more receptive.

Venture Capital 61

Venture Capital Finance Revenue Startup 61

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.

SaaS 289

SaaS Startup Venture Capital CTO 289

SaaStr

APRIL 7, 2023

A related post here: The 10x Rule: What Raising $1 of Venture Capital Really Means (cap table image from Thomas Tunguz’s post here ) The post Dear SaaStr: How Much Of My Startup Do I Need to Sell In Each Venture Round? If they purchased 20%, that would return $200m … and thus return 1x the fund. The goal is 3x overall or better.

Startup 307

Startup Venture Capital 307

SaaStr

NOVEMBER 10, 2019

The post How do venture capital general partners resolve investment choice disagreements? In fact, they are often much more motivated to get one done. They have more to prove. And that may be the better choice for you. View original question on quora.

Venture Capital 182

Venture Capital Investment Startup 182

Kellblog

MAY 8, 2019

Every so often I post highlights from the quarterly Fenwick & West Venture Capital Survey , as much to share knowledge about the existence of the survey [1] as to share its current-quarter data. This survey is important for two reasons. First, it shows trends in price changes over time across various VC rounds.

Venture Capital 72

Venture Capital Finance Startup Pricing 72