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.

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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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 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.

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.

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.

How Developed is Global Venture Capital Market?

Tom 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 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?

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.

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.

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?

The Decentralization of Venture Capital

Tom 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 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.

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.

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.

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.

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.

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

Tom 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?

Tom 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.

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.

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.

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.,

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. Pietro Bezza | Managing Partner @ Connect Ventures. Evgenia Plotnikova | Principal @ Dawn 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

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

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? So, what does it take to raise capital, in SaaS, in early 2017? funding napkin saas software as a service venture capital

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 capital

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. Not yet convinced that you shouldn’t raise venture capital? :) Let us know ! 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. Say a company has consumed $50M in capital but has only $5M in ARR to show for it. Career Development Startups Strategy Uncategorized Venture Capital

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

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.

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

Building any business is hard

The Angel VC

For most companies which didn't raise venture capital this is completely irrelevant. saas venture capitalJudging from the number of Facebook likes and retweets, as well as comments on Twitter and elsewhere, my last post resonated with quite a lot of people.

Are VCs Still Investing?

Point Nine Land

startup technology venture-capital saas covid19The state of fundraising in the spring of 2020, in 12 simple charts At last week’s virtual SaaStr Summit I did a presentation about “Fundraising During a Pandemic”.

Avoiding the Ten-Year Stock Option Trap (and Other Stock-Option Considerations)

Kellblog

In addition, if you file a section 83b election within 30 days (and the grant was not in-the-money) then you pay no tax at exercise time and incur tax liability only when you eventually sell the shares, which if it’s more than a year away, results in long-term capital gains tax treatment [13].

Good CEO Habits: Proactively Update Your Board at the End of Every Quarter

Kellblog

Board CEO Startups Uncategorized Venture Capital communicationsI am surprised by how many startup CEOs leave the board hanging at the end of the quarter.

Introducing Jenny Buch, Talent Manager at Point Nine

The Angel VC

hr point nine recruiting venture capitalOnce a startup has released the first version of its product, raised some funding, started to get the word out and is getting some traction, the biggest challenge almost always becomes hiring.