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Jason Lemkin
Founder & CEO
SaaStr
@jasonlk
VC Fundraising Workshop
It’s the same but different
Workshop Wednesday with SaaStr CEO Jason Lemkin - VC Workshop
Workshop Wednesday with SaaStr CEO Jason Lemkin - VC Workshop
Workshop Wednesday with SaaStr CEO Jason Lemkin - VC Workshop
VCs Investing, But Stress in System
VCs Mostly Still Hunting Decacorns
In 2021, “easy” to
see in SaaS
In 2024, “easy” to
see in AI
vs
VCs Mostly Still Hunting Decacorns
Best of Best Still There in SaaS
Now that we know it
can be done (SaaS
Decacorns) … so …
Big Funds flooding
winners with capital
100x ARR Back … For Subset of AI
Why AI is Already Big $$$
How a $2B Fund Makes Money
A $2B fund is what it
takes to write a Series
B check today
Even 4 unicorn cash
exits not enough for
$2B fund
Seed Funds Crunched on Ownership
A $100m seed fund
even with 3+ $1B exits
can’t make money
with 5% ownership
That’s really 10%
though at seed (50%
dilution profile)
Big Funds Tripling Down on Winners
Big Funds flooding
winners with capital
Capturing a lot of
headlines, but later
stage overall still
slow — outside of AI
Yes, Come to SF Bay to Raise VC $$$
Growth is Still King -- NOT Profits
Efficiency only matters:
- Run up to IPO
- If can’t raise more money
Otherwise, VCs don’t really
care if profitable or that
efficient … if growth is epic
Triple Triple Double Double Still Rules
Many B2B startups have
seen growth slow, but not all
Still need “T2D2”, or ideally,
“T3D2” to get to $200m+
ARR, growing 40%, in 9-10
years or less
Growth Slowed? Cry Me a River
80%+ of VC-backed
startups not growing
fast enough anymore
to raise another
round
Be very self-aware
here
Growth Slowed? Cry Me a River
80%+ of VC-backed
startups not growing
fast enough anymore
to raise another
round
Be very self-aware
here
Calling Yourself “AI” (Probably) Isn’t Enough
B2B2C, Vertical, Security: No Downturn
B2B2C: Bounced Back Fast
Stress Will Remain Where Multiples Are Low
IPO Market & Multiples Still “Meh”
VCs Probably Too Optimistic on M&A
AI: But Where is Budget Coming From?
Other Apps,
Budgets In Many
Cases
Being Cut to Fund AI
Why?
Huge Efficiency
Promises
Thank You!
+
Questions?

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Workshop Wednesday with SaaStr CEO Jason Lemkin - VC Workshop

  • 1. Jason Lemkin Founder & CEO SaaStr @jasonlk VC Fundraising Workshop It’s the same but different
  • 5. VCs Investing, But Stress in System
  • 6. VCs Mostly Still Hunting Decacorns In 2021, “easy” to see in SaaS In 2024, “easy” to see in AI vs
  • 7. VCs Mostly Still Hunting Decacorns
  • 8. Best of Best Still There in SaaS Now that we know it can be done (SaaS Decacorns) … so … Big Funds flooding winners with capital
  • 9. 100x ARR Back … For Subset of AI
  • 10. Why AI is Already Big $$$
  • 11. How a $2B Fund Makes Money A $2B fund is what it takes to write a Series B check today Even 4 unicorn cash exits not enough for $2B fund
  • 12. Seed Funds Crunched on Ownership A $100m seed fund even with 3+ $1B exits can’t make money with 5% ownership That’s really 10% though at seed (50% dilution profile)
  • 13. Big Funds Tripling Down on Winners Big Funds flooding winners with capital Capturing a lot of headlines, but later stage overall still slow — outside of AI
  • 14. Yes, Come to SF Bay to Raise VC $$$
  • 15. Growth is Still King -- NOT Profits Efficiency only matters: - Run up to IPO - If can’t raise more money Otherwise, VCs don’t really care if profitable or that efficient … if growth is epic
  • 16. Triple Triple Double Double Still Rules Many B2B startups have seen growth slow, but not all Still need “T2D2”, or ideally, “T3D2” to get to $200m+ ARR, growing 40%, in 9-10 years or less
  • 17. Growth Slowed? Cry Me a River 80%+ of VC-backed startups not growing fast enough anymore to raise another round Be very self-aware here
  • 18. Growth Slowed? Cry Me a River 80%+ of VC-backed startups not growing fast enough anymore to raise another round Be very self-aware here
  • 19. Calling Yourself “AI” (Probably) Isn’t Enough
  • 22. Stress Will Remain Where Multiples Are Low
  • 23. IPO Market & Multiples Still “Meh”
  • 24. VCs Probably Too Optimistic on M&A
  • 25. AI: But Where is Budget Coming From? Other Apps, Budgets In Many Cases Being Cut to Fund AI Why? Huge Efficiency Promises