Dear SaaStr: What Should I Do When VCs Ask About The Competition?
Dear SaaStr: What Should I Do When VCs Ask About The Competition? Embrace it. This is your chance to shine. Not Truly Great Founders: Hide from the competition and an accurate description of the competition Don’t actually know the competition Don’t actually know the...
When an Investor Puts Their Career On The Line For You
So VCs are seen by most founders these days as almost commodities. Folks with money that you get money from. And maybe that’s a good thing, in many ways. I see fewer and fewer founders care if VCs make money, and the Go Go days of 2020 and 2021 are probably part of...
The $100,000,000 Valuation: The Last Stop Before “IPO or Bust”
So a lot of founders and VC talk about “optionality”, and it’s an interesting topic. How much optionality do you give up when you raise venture capital? Your VCs may be hoping to make 50x-100x their investment, but they are expecting to make at least 3x. More on...
If You Want to Get Funded – Dude, Make It Easy On Them (Updated)
These truly are the Days of Change in SaaS. In 2021, it seemed like everyone is raising 3 big VC rounds a year, effortlesslyBut for most of you, for most of us, it wasn’t any easier to raise VC capital. And now, it’s even harder. Why? The bar has gone...
Over 700 VCs Already Coming to 2023 SaaStr Annual! (List UPDATED!!)
Year after year, VCs show up to SaaStr Annual locked and loaded, term sheets in hands, on the hunt for soon-to-be Unicorns to add to their portfolios. From the Founding Partners, Managing Directors and big name SaaS VCs who grace the stage. to the firms that send over...
Dear SaaStr: What are The Top Challenges of Venture Capital Firms?
Dear SaaStr: What are The Top Challenges of Venture Capital Firms? Generally there are three major challenges. The first one is non-obvious. Challenge #1: Raising Another Fund. While Sequoia, Benchmark, Founders Fund, etc. etc. can all basically raise a new fund in...
Carta: The Actual, Real Dilution from Series A, B, C and D Rounds
So for years we’ve all advised founders about some rough numbers for dilution for each traditional venture round: 20% dilution in a Seed round, sometimes less if you don’t need much money, sometimes more if you do and it’s early 20% dilution in an A...
Dear SaaStr: What Are The Pros and Cons of a Double Trigger with a 6 Year Vest for Founders of a Startup?
Dear SaaStr: What Are The Pros and Cons of a Double Trigger with a 6 year Vest for Founders of a Startup? I think there are no cons and this is a great idea. First, a 6+ year vesting schedule protects you from the less committed founders. The last thing you want is...
Dear SaaStr: What Are the Exit Options for VCs That Fail to Make It in The VC Industry?
Dear SaaStr: What Are the Exit Options for VCs That Fail to Make It in The VC Industry? There is probably no better business to fail at than to be a failing General Partner at a sizeable VC firm. If you fail as an associate, principal, etc. … that’s just like any...
Dear SaaStr: Does The VC Fund Pay for Legal Fees After The Term Sheet is Signed?
Dear SaaStr: Does The VC Fund Pay for Legal Fees After The Term Sheet is Signed? The traditional practice is that VC funds have the startup pay both their fees and the VC’s legal fees in the financing. A lot of folks get upset about this — but my advice is Be Zen and...
The SaaStr MiniGuide to Pitching, Raising and Closing VC Funding
Ok here is basically a bible for you for raising venture funding. Trust me. There’s too much advice that is biased, or from the inexperienced out there. Raising venture capital is not a game. But it is a process. Here’s the insider guides to making it...
Dear SaaStr: Why Do VCs Leave Their Firms to Start Their Own Funds?
Dear SaaStr: Why Do VCs Leave Their Firms to Start Their Own Funds? Let’s step back a minute. Most VC firms aren’t equal. Usually, the founding partners or the more senior partners control both (1) most of the profits, the “carry” and (2) own the management company,...
Dear SaaStr: Can an Entrepreneur Back Out of a Signed Term Sheet Without Damaging Their Reputation?
Dear SaaStr: Can an entrepreneur back out of a signed term sheet without damaging their reputation? In my experience — Yes, probably. As a founder, you can back out of a term sheet if something is off, or even if you just get another offer you prefer. There is a lot...
Dear SaaStr: What Were The Top Pieces of Advice You’re Glad You Ignored?
Dear SaaStr: What Were The Top Pieces of Advice You’re Glad You Ignored? #1: “Don’t do any VC investments your first year. Take your time” Sound advice. But would have missed 4 unicorns if I had. I would have missed leading seed investments...
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