February 18, 2025 Pitchbook : Venture debt hits all-time high as startups diverge from VC expectations
Later-stage startups are increasingly turning to venture debt as they struggle to keep up with growth expectations from VCs, and as a way to avoid raising equity financing at lower valuations. (read more…)
February 15, 2025 Pitchbook : Record highs for down rounds
In 2024, one-quarter of Series D+ venture financings in the US were completed at a lower valuation—and that's actually a lower percentage than the year prior. Down rounds have been spiking for the past few years, unsurprisingly. Those same Series D+ rounds were being completed at lower valuations at a 7% occurrence in 2021. Receiving equity interest from investors, even in a down round, is a step in the right direction away from shutting down. (read more…)
January 9, 2025 VC Lab : The State of Venture 2.0 in 2024
Our analysis of over 850 new fund managers in 2024 – representing approximately half of all VC firms launched worldwide – reveals a striking transformation in who gets to write the checks. Today’s emerging managers are younger (46% under 40), more diverse (27% women and non-binary), and increasingly likely to come from outside the industry (48.8% transitioning from other sectors). (read more…)
CATEGORY: VC
November 19, 2024 SaaStr : The Arguments For Not Raising at a Unicorn Valuation
There are significant downsides to raising at $1B. Especially today: #1. It’s Going to Be Very Hard to Make Those Unicorn Investors Money Today. #2. You’ll Start Attracting The Wrong People to Join You #3. Internal Inflation Will Accelerate. Everything Will Get More Expensive. (read more…)
CATEGORY: capital, resilience, risk, valuation
September 5, 2024 NBC News : nance Family offices are about to surpass hedge funds, with $5.4 trillion in assets by 2030
The number of single-family offices — the in-house investment and service firms of families typically worth $100 million or more — is expected to rise from 8,000 to 10,720 by 2030, according to a report from Deloitte Private. Their assets are expected to grow even faster, topping $5.4 trillion by 2030, up from $3.1 trillion today and more than doubling since 2019. (read more…)
CATEGORY: capital
June 20, 2024 SaaS Capital : What’s Your SaaS Company Worth?
Valuation Multiple = -2.43 + (0.19 * SCI) + (6.21 * ARR Growth Rate) + (4.38 * NRR Rate) (read more…)
May 22, 2024 Emergence Capital : Beyond Benchmarks 2024
ARR growth rates decreased significantly in 2023, and growth stage companies were impacted the most. Fundraising is meaningfully harder today than it has been in the past few years. 60% of companies leveraged GenAI in a 2023 product release. Public Markets no longer reward "Growth at All Costs"; however, Public Markets still value Growth at 2-3x Profitability (read more…)
May 13, 2024 The VC Factory : The 3 Investment Criteria Venture Capitalists Use to Screen Deal Flow
#1. Fit With The Fund's Investment Strategy #2. Team Fit With The Execution Challenges #3. Exceptional VC Returns Demand Large Markets (read more…)
April 29, 2024 Pitchbook : PitchBook Analyst Note: Establishing a Case for Emerging Managers
“It is reasonable to expect a higher proportion of the top-performing funds to come from the emerging manager cohort, primarily due to their smaller fund size and earlier-stage focus.” “Specialists outperform their generalist peers. Specialists often have an advantage from a sourcing perspective, as founders operating in a highly specialized space likely prefer working with a sector-dedicated fund.” (read more…)
April 26, 2024 SaaS Capital : 2024 Benchmarking Metrics for Bootstrapped SaaS Companies
The median growth rate for bootstrapped SaaS companies with $3M to $20M in ARR is 30% while those in the 90th percentile are growing by 75%. The median Net Revenue Retention (NRR) for bootstrapped SaaS companies with $3M to $20M in ARR is 100% while those in the 90th percentile report NRR of 120%. (read more…)