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It’s difficult to know which stage of investment today has the highest risk. Risk has gone up in every segment.
Seed: hot cos break seed fund model, raise $4m-$10m
Series A: hot companies can raise $20m+ at $1m ARR
Series B: 30x+ ARR squeezes ownership, requires $3B+ outcomes
Seed: hot cos break seed fund model, raise $4m-$10m
Series A: hot companies can raise $20m+ at $1m ARR
Series B: 30x+ ARR squeezes ownership, requires $3B+ outcomes
Series C: Hot Unicorns now minted as early as $20m ARR vs. $100m before
Perhaps oddly the least risky is pre-IPO today. Competition is fierce, but if price one OK, the return can be epic very fast
And yet ... the Cloud is on fire.
And the average SaaS IPO is worth $10B
Perhaps oddly the least risky is pre-IPO today. Competition is fierce, but if price one OK, the return can be epic very fast
And yet ... the Cloud is on fire.
And the average SaaS IPO is worth $10B
With huge expansion of SaaS and Cloud multiples, and the epic growth since Covid, the next generation of public SaaS companies are worth $10B on average
That means you can still do 10x at $1B if you pick right, and even 100x on a Zoom or Snowflake
That means you can still do 10x at $1B if you pick right, and even 100x on a Zoom or Snowflake
And so also you see a lot of deals now at $3B valuations or so
Why? You can still do 3x if it IPO’s at $10B. More if it’s an Affirm, Okta, etc.
3x is where the math works for late-stage investing
Why? You can still do 3x if it IPO’s at $10B. More if it’s an Affirm, Okta, etc.
3x is where the math works for late-stage investing
