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. Venture capital is risk capital, and the VCs here for the most part also didn’t make much money either.

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.

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How Would a Person Start a Venture Capital Fund?

SaaStr

Assuming you have at least a partial track record, then, there are two-and-a-half basic paths on how to start a venture capital firm. Start Small before your start a Venture Capital Firm. Grow within a Venture Capital Firm. The 2 and 20 Venture Capital Model.

The Pros and Cons Of Working in Venture Capital

SaaStr

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.

Dear SaaStr: What Happens After You Raise Venture Capital for the First Time?

SaaStr

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?

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.

One Simple Rule On How Much To Pay Yourself Once You Raise Venture Capital

SaaStr

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.

New SaaStr University FREE Course: The Secrets to Fundraising and Venture Capital

SaaStr

The post New SaaStr University FREE Course: The Secrets to Fundraising and Venture Capital appeared first on SaaStr. We’ve launched (and will continue to add to) a new, FREE SaaStr University course: The Secrets to VC and Fundraising.

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?

Do I Need To Raise Venture Capital At All? No. But It Takes Longer If You Don’t.

SaaStr

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?

The Secrets to Working with VC Associates, Scouts, Syndicates….and the True Gate Keepers to Venture Capital with Coelius Capital Managing Partner Zach Coelius and GGV Capital Investor Tiffany Luck (Pod 589 + Video)

SaaStr

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. Venture Partners.

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.

Passive Investing in Venture Capital and the Parallels to Public Equities

Tomasz 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.

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.

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.

Venture Capital in 2020/2021 and “The Postmates Effect”. I.e., It’s OK to Be #2 or #3 Now.

SaaStr

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. The post Venture Capital in 2020/2021 and “The Postmates Effect” I.e., It’s OK to Be #2 or #3 Now.

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.

The Figures that Will Move the Venture Capital Market in the Next 5 Years

Tomasz Tunguz

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.

How Bridge Rounds Work in Venture Capital: Messy, Full of Drama, and Not Without High Risk

SaaStr

I’ve watched many bridge rounds over time from a far, and took $500k in bridge capital at EchoSign myself when our seed round didn’t end up being quite enough to get us to the Series A. Simply put, it’s another round of venture financing from the same investors as the last round. Each bridge round requires a VC burning some political capital. If she/he has gone to another firm, there’s no political capital to spend.

Just How Inaccurate are Quarterly Venture Capital Activity Reports?

Tomasz Tunguz

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.

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.

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.

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?

30 SaaS Founders on Raising Money and Venture Capital

Baremetrics

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. Raising Capital for Your SaaS Business.

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 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.

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]).

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 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.

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.

We’re Overthinking Seed Round Signaling Effects

For Entrepreneurs

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.

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.

Playing Bigger vs. Playing To Win: How Shall We Play the Marketing Strategy Game?

Kellblog

The story of Impress, a great technology, a product that consumers loved, but where P&G found no way to win in the market (and ultimately created a successful joint venture with Clorox instead), should be required reading for all tech marketers.

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.

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.

Official Video of my SaaStr Europa Presentation

Kellblog

SaaS SaaStr Sales Startups Strategy Venture Capital scale-upJust a quick post to highlight that SaaStr has posted the official video of my SaaStr Europa 2022 presentation entitled, The Top 5 Scale-Up Mistakes , that I gave in Barcelona in June.

The Midas List Live (Video + Transcript)

SaaStr

A discussion about venture capital and the effects Covid-19 has had on in the industry. 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.

Whose Company Is It Anyway? Is The Board Your Boss?

Kellblog

While most startup boards try to follow the Hippocratic Oath of venture capital, some — like well-meaning but overbearing parents — smother their founders and their companies with love. CEO Management Silicon Valley Startups Strategy Venture Capital

Talking Burn: Appearance on the Metric Stack Podcast on Cash Conversion Score and Related Metrics

Kellblog

I have to say it was a combination of luck and foresight that I started talking with Allan Wille and Lauren Thibodeau about capital efficiency as a potential topic for their Metric Stack podcast many months ago. Financing Metrics SaaS Startups Venture Capital

Everything You Need to Know About the CRO and CMO Working Relationship: In One Story

Kellblog

Management Marketing Sales Startups Strategy Venture Capital Blame gameI had a chat with a CMO a while back. DK: How’s the relationship with your CRO going? CMO: Solid. We collaborate really well. DK: I’ve heard you’ve had some trouble hitting sales targets.