How Venture Capital Has Changed Since Covid-19

SaaStr

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.

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? How many got there without raising venture capital?

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What’s Really Happening in Venture Capital, Right Now

SaaStr

First, come here from 20+ of the top VCs in SaaS and Cloud for FREE at our next big digital event, the next SaaStr Summit: The New New in Venture on May 27th. The post What’s Really Happening in Venture Capital, Right Now appeared first on SaaStr. Q: Are Silicon Valley VC firms suspending or significantly cutting down on startup investments during this pandemic given the vast economic uncertainties of this time, or is it business as usual? I’m glad you asked!

Why Do Some People Consider Venture Capital a “Young Person’s Game”?

SaaStr

It doesn’t take that long in venture to make a decent salary. The post Why Do Some People Consider Venture Capital a “Young Person’s Game”? Because it takes so, so long to make money from it. At least from very early-stage investing.

Webinar: What’s Going On in Venture Capital Right Now with Byron Deeter, Bessemer Venture Partners

SaaStr

Next in this series is one of the community’s favorite speakers, Byron Deeter of Bessemer Venture Partners. 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.

The Current State of Venture Capital and Cloud with Byron Deeter, Bessemer Venture Partners

SaaStr

Over 1,500 of you registered for an incredible deep-dive we did yesterday with Byron Deeter, Partner at Bessemer Venture Partners. The agenda: What’s happening in venture today. When to raise capital. The post The Current State of Venture Capital and Cloud with Byron Deeter, Bessemer Venture Partners appeared first on SaaStr.

Techstars and HBCUvc Launch 10-City Startup Weekend Tour to Promote Diversity in Entrepreneurship and Venture Capital

TechStars

October 2, 2019 – Techstars , the worldwide network that helps entrepreneurs succeed, and HBCUvc , a nonprofit fellowship program providing Black and Latinx students with training and mentorship in venture capital, today announced the launch of a joint 10-city Startup Weekend tour across the country. Some teams even started to generate revenue during the event, while others went on to raise funds from angel investors or venture capitalists. WASHINGTON, D.C.

What are the key differences between venture debt and venture capital?

SaaStr

Venture capital / equity is expensive. But … with few exceptions, it’s 100% risk capital. Venture debt is relatively cheap. 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. Venture debt generally has conditions, and covenants, and terms that restrict how much you can spend — which equity doesn’t.

How do corporate venture capital firms different from conventional venture capital firms?

SaaStr

A few like Salesforce Ventures and GV are an exception, but let me explain: Corporate VCs often do not write a “second check”. Again, this is less likely with Salesforce Ventures and GV, etc. The post How do corporate venture capital firms different from conventional venture capital firms? They aren’t as dependable. This doesn’t mean they are “worse”. It does mean be careful how you use them. This is issue #1.

How do venture capital firms determine when and how to help stalled or stuck portfolio companies?

SaaStr

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. They expect a rough quarter every 4–5 or so.

Why has Skype co-founder Niklas Zennstrom’s venture capital firm raised over 800 million to back European startups?

SaaStr

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?

How Revenue-Based Financing and Venture Capital Funding Work Together

OPEXEngine

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. Similar to a venture capitalist (VC), I try to understand where startups are in their life cycles — and where they can expect to go. Is RBF simply an alternative to venture capital funding? Lower-cost capital post-VC funding.

How Developed is Global Venture Capital Market?

Tomasz Tunguz

Just where is the US venture market relative to the rest of the world? The chart above shows the compound annual growth rate of venture investment rounds A through D in ten fastest growing venture markets plus the US from 2010-2016. It’s wonderful to see the expansion of venture capital across these geographies and especially at very healthy growth rates. This chart illustrates the depth of the capital pool available to startups.

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?

SaaStr

Q: How hard is it to raise venture capital? The overall odds of raising venture capital may be 0.05%. According to YC, “Each batch of YC companies raises about $250M of seed capital in the weeks following Demo Day.” Find a way to go 24+ months without VC capital.

Highlights from the 1Q19 Fenwick & West Venture Capital Survey

Kellblog

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 is useful information to see what’s happening in the market, and I suppose semi-useful information in perhaps timing your venture rounds (subject to Kellblog Rules 1 and 2 of Financing [2]).

We’re Overthinking Seed Round Signaling Effects

For Entrepreneurs with David Skok

Conventional wisdom, and advice, abounds: entrepreneurs should never include a venture firm in their seed round because it’ll scare other VCs off from pursuing the A. Getting Funded Entrepreneur Funding Raising capital seed deals Venture capitalThere is much hand wringing in the startup ecosystem about various forms of signaling between the seed and A rounds.

The Decentralization of Venture Capital

Tomasz Tunguz

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. In the last decade, venture firms have experimented with decentralized sourcing. Decision-making in venture firm is a dark art. Non-consensus means investing in areas competitors aren’t yet so the valuations are more attractive because there is less capital supply.

How do venture capital general partners resolve investment choice disagreements? If a number of partners think a certain startup is a good portfolio candidate and others don’t agree, what happens?

SaaStr

The post How do venture capital general partners resolve investment choice disagreements? It varies. Generally: The most senior partners can get any deal done they want. Period. They make seek consensus, and may defer when they don’t get it. But in the end, they can do what they want. And the more junior ones need more buy-in from the rest. The more junior the partner, or investing professional, the more she/he needs others to buy-in.

Raising Funding During COVID with Homebrew Partner Satya Patel (Video + Transcript)

SaaStr

I’m here to talk to you today about raising capital in today’s environment, particularly at the seed stage, so we’ll touch on the Series A stage as well. That’s a good place to start, to understand the actual landscape in which you are trying to raise capital.

How to calculate your total addressable market and make a great TAM slide for investors

For Entrepreneurs with David Skok

Getting Funded Startup Help Business Model Funding SaaS TAM TAM slide Total Addressable Market Venture capitalI’ve seen hundreds of startup pitch decks in my time at Matrix, and have found total addressable market (TAM) slides to be among the most frequently mis-executed. I get the sense they are often included as a formality in an attempt to get VCs to check a mental box and continue on hearing about other.

The Midas List Live (Video + Transcript)

SaaStr

A discussion about venture capital and the effects Covid-19 has had on in the industry. Join Nicole Quinn, General Partner at Lightspeed Ventures, Ann Miura-Ko, Founding Partner at Floodgate, and Alex Konrad, Senior Editor at Forbes as they talk about what they have seen in the industry lately and how they are moving forward. Nicole Quinn, general partner of Lightspeed Venture Partners and Ann Miura-Ko, co-founding partner of Floodgate and I’ll hand it over to you.

400+ VCs Are Coming to New New in Venture!

SaaStr

SaaStr’s New New in Venture Virtual Summit is coming up May 27th and here’s why you should join. Sapient Capital. Hyde Park Ventures. Salesforce Ventures. Bonfire Ventures. Samsung Ventures. NextGen Venture Partners. Frontline Ventures. Aflac Ventures. Kapor Capital. Bain Capital Ventures. Hearst Ventures. Innova Capital. Lux Capital. Mighty Capital.

Venture Capital for the Rest of Us

Mucker Capital

We took everything we learned in the preceding decades spent inside and outside the Valley and applied it to venture in L.A. If venture capital is only about finding brands and checking boxes, Silicon Valley has to be the easiest place in the world to be a VC. In the world of seed capital, the entrepreneur and their working relationship with VCs is everything. 2015: Getting Past the Catch-22 of Venture Capital.

How to Get Press Coverage

The Angel VC

Tell them how much you’ve raised If you’re announcing a funding round, journalists will ask you how much capital you’ve raised. pr public relations startups venture capitalStartup PR for Dummies Public Relations (PR) is not a high priority for most early-stage startups.

Ten Pearls Of Enterprise Software Startup Wisdom From My Friend Mark Tice

Kellblog

Go To Market Marketing Sales Startups Strategy Uncategorized Venture CapitalI was talking with my old friend, Mark Tice , the other day and he referred to a startup mistake as, “on his top ten list.” ” Ever the blogger, I replied, “what are the other nine?”

Podcast: How Venture Capital Will Change Your Business and How it Stacks Up Against Other Kinds of Funding, an Interview with Rand Fishkin of Moz

Divestopedia

Whether buying, selling or growing, you are going to deal with capital. Rand Fishkin explains what venture capital did for him, how it falls short in certain situations and what other types of capitalization you can use to pursue your business dreams

Is Seed the new Series A? (Video + Transcript)

SaaStr

Since 2010 we’ve seen more startups, funds, and capital than ever before, but with this drastic increase, investors are seeing unexpected new trends reshaping the future of the industry. Join this panel of investors from Connect Ventures, Blossom Capital, Dawn Capital, The Family, and Indico Partners as they provide an overview of the current investment landscape, and discuss whether the seed stage is emerging as the new Series A. Pietro Bezza, Connect Ventures.

The Coming Wave of Venture Capital and What It Means for Your Startup

Tomasz Tunguz

The second quarter of 2014 is the sixteenth largest by capital deployed sinced 1995, making it a top quartile quarter, but to break into the top five, that figure would need to triple. Which startup sectors should expect to benefit from this surfeit of capital? Each quarter, the National Venture Capital Association and Thomson Reuters gather data on the VC industry. Through the first six months of 2014, VCs have raised about as much as all of 2013.

Which Open Source License Should Your Project Use if You Want to Raise Venture Capital?

Tomasz Tunguz

I was curious if there was any relationship between type of license used by startup commercializing open source software, and their ability to raise capital, and exit. However, looking at the chart above, we can see that Apache projects raise a disproportionate amount of capital, compared to their share of open-source projects. Developers chose the MIT license for 20% of code repositories, but commercial entities of MIT projects raised less than 1% of venture dollars.

Why You Should Consider Eliminating the Title “Implementation Consultant” from Your Startup

Kellblog

HR Organizational Behavior Professional Services SaaS Startups Uncategorized Venture Capital Implementation Consultant organization design PSOI’ve worked with several startups that fell into the following pattern: Selling a SaaS application at a healthy price (e.g., 100K to $200K ARR). With low, fixed-cost implementation packages (e.g., $25K). But a product that actually takes maybe $50K to $75K to successfully deploy.

Ten Questions Founder CEOs Should Always Be Able to Answer About Their Startups

Kellblog

I decided to write this post to help entrepreneurs ensure they have their bases are covered when speaking to angel investors, seed firms, or venture capitalists. Financing Startups Venture Capital angel founder pre-seed seed seed-plus

SaaS Funding Napkin, the 2017 edition

The Angel VC

As a reminder, in the original post I tried to give a "back of a napkin" answer to this question: What does it take to raise capital, in SaaS, in 2016? On another note, when I say "what does it take to raise capital" I mean "what does it take to have an easy time raising capital from great investors ". So, what does it take to raise capital, in SaaS, in early 2017? funding napkin saas software as a service venture capitalToday is January 10, 2017.

Connecting Women VCs: Building Community and a Better Future

TechStars

Our mission with the global directory of women in VC is to give women around the world the tools to better find each other, connect, and collaborate,” said Jessica Peltz-Zatulove, co-creator of the Women in VC directory and Partner at MDC Ventures. “We Accelerators Diversity Stronger Together investing venture capital WomenFemale investors have always kept discreet lists of other women angels and VCs.

The Pipeline Chicken or Egg Problem

Kellblog

Finance Marketing SaaS Sales salesops Startups Uncategorized Venture Capital pipeline analysis pipeline generationThe other day I heard a startup executive say, “we will start to staff up sales — hiring reps beyond the original plan — once we start to see the pipeline to support it.” ” The comment made me think because, while ostensibly logical, it wouldn’t even occur to me to think of things in that way.

Are We Due for a SaaSacre?

Kellblog

Finance Rule of 40 SaaS Startups Uncategorized Venture Capital EV/R growth SaaSacreI was playing around on the enterprise comps [1] section of Meritech ‘s website today and a few of the charts I found caught my attention. Here’s the first one, which shows the progression of the EV/NTM revenue multiple [2] for a set of 50+ high-growth SaaS companies over the past 15 or so years [3].

Founders: Please don’t allow anyone to screw your early backers

The Angel VC

We’re trying hard to make venture capital a little more human , and we really mean it when we say that we aspire to be good VCs. financing vc venture capitalUnderstanding the mechanics of founder re-ups in financing rounds This post will likely not make me more popular and might offend some people. But if your core beliefs on how business should be done are at stake, you can’t try to win the popularity contest.

Loom: Love at first sight

Point Nine Land

venture-capital startup seed-investment saasThere is this idea in the VC community that investors usually know after the first meeting (or maybe even after the first five minutes) if they want to invest in a company.

The growing dissonance between two business models (SaaS and VC)

The Angel VC

For VCs, the question is how many of these companies can become large enough to make the (admittedly somewhat weird) business model of venture capitalists work. Second, founders should ask themselves what kind of company they aspire to build and should only try to raise venture capital if they are convinced that they want to build what Clément called the “VC compatible” startup (check out his post for a little checklist). saas venture capital

Career Decisions: What To Look For In a Software Startup

Kellblog

In venture capital (VC) land, you should view investors as long-term partners in value creation. ” A capitalization table (aka “cap table”) is simply a list of investors, the type and amount of shares they hold, shares held by founders, shares allocated to the stock option pool, warrants held by suppliers and/or debtholders, and along with information about any debt the company has acquired.

What makes fundraising so stressful?

The Angel VC

More often than not, raising venture capital is a huge distraction for the founding team. If you are a founder or CEO and have raised venture capital it would be awesome if you could participate in the survey. fundraising typeform venture capital