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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. 5 scares most investors off.

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Dear SaaStr: What Are the Best Arguments Against Raising Venture Capital?

SaaStr

Dear SaaStr: What Are the Best Arguments Against Raising Venture Capital? The post Dear SaaStr: What Are the Best Arguments Against Raising Venture Capital? TIRED: “We’re raising a small $3m round before we do a Big $20m Series A later this year” WIRED: “We’re raising $3m to build a $100m+ business.

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Dear SaaStr: We Don’t Need It. Should We Still Go After Venture Capital, and When?

SaaStr

Should We Go After Venture Capital, and When? There are only two reasons to raise Venture Capital: You need it. If the only way you can get to the next level is to raise capital, then do it. Venture capital is very expensive in the early days, in terms of dilution. Dear SaaStr: We Don’t Need It.

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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? A deep dive on why late stage is harder than you might think here: The post Dear SaaStr: Is Late-Stage Venture Capital More Stressful than Early-Stage Venture Capital? appeared first on SaaStr.

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Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment?

SaaStr

Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? A related post here: 10 of My Top Seed Investing Mistakes The post Dear SaaStr: What Did You Learn From Your Worst Venture Capital Investment? History doesn’t repeat. But it definitely rhymes. appeared first on SaaStr.

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Venture Capital, Withering & Dying

Tom Tunguz

Amy Cortese published “Venture Capital, Withering & Dying” in the New York Times on Oct 21, 2001. Venture capital funds lost 18.2 percent, on average, for the 12 months ended June 30, according to Venture Economics, while Internet-specific funds were down 27.7 This is a natural part of the cycle.

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Dear SaaStr: How are Funds Invested by Venture Capital Firms?

SaaStr

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