How often is it for founders to cash out in between raising rounds?

These days, if you raise money at a >=$80m-100m valuation, and are oversubscribed, most bigger Silicon Valley VC firms will offer to provide some founder liquidity. It’s not out of the goodness of their hearts. It’s so they can buy more. Bigger funds want to own as much as they can, and if they can get another 2%-3% more than otherwise, secondary liquidity is a way to get it. Some advice here though:
  • Founders taking secondary liquidity at lower valuations creates huge signaling risk — especially CEOs. If a founder is willing to sell shares at $30m … there is no way I believe you are trying to build a $1b+ company. You are selling way, way too cheap.
  • It’s much, much, much better to be asked. If a founder really wants to sell at almost any price, it’s a flag. But if the VC offers first, and the founder Continue reading "How often is it for founders to cash out in between raising rounds?"

Benchmarks in SaaS for Seed and Series A Rounds in 2017

I’m often asked by founders what milestones they need to get to in order to raise an institutional Seed round or Series A and what size do those rounds tend to be. The short answer is, it depends; but below are some benchmarks I’ve seen, which is based on companies raising in the Bay Area and NYC. Keep in mind, there are always exceptions and outliers! Average Round Sizes: I looked at Crunchbase data for Seed and Series A rounds in SaaS companies in NYC and the Bay Area over the last 2 quarters. NYC:
  • Seed – Average round size – $2M
  • Series A – Average round size – $7.65M
Bay Area:
  • Seed – Average round size – $1.7M
  • Series A – Average round size – $8.6M
Benchmarks for getting a Seed round done: Repeat and proven founders with past success can often raise a seed round Continue reading "Benchmarks in SaaS for Seed and Series A Rounds in 2017"

Benchmarks in SaaS for Seed and Series A Rounds in 2017

I’m often asked by founders what milestones they need to get to in order to raise an institutional Seed round or Series A and what size do those rounds tend to be. The short answer is, it depends; but below are some benchmarks I’ve seen, which is based on companies raising in the Bay Area and NYC. Keep in mind, there are always exceptions and outliers! Average Round Sizes: I looked at Crunchbase data for Seed and Series A rounds in SaaS companies in NYC and the Bay Area over the last 2 quarters. NYC:
  • Seed – Average round size – $2M
  • Series A – Average round size – $7.65M
Bay Area:
  • Seed – Average round size – $1.7M
  • Series A – Average round size – $8.6M
Benchmarks for getting a Seed round done: Repeat and proven founders with past success can often raise a seed round Continue reading "Benchmarks in SaaS for Seed and Series A Rounds in 2017"

Last Day to Sponsor SaaStr Annual 2018 at 2017 Rates — And Pick First!

Screen Shot 2017-03-31 at 9.05.29 AMWe’re on track for 2.2x the attendees at the 2018 SaaStr Annual vs. 2017, at least so far. Next year will be better than ever, and we’re building a dedicated sponsor pavillion right as you walk in and enter the site. Combine the two, and I’m hopeful sponsors get as much as 3x the traffic as they did this year. Renew TODAY, before the month and quarter is out, and you can renew at the 2017 rates … with up to 3x the booth traffic. And you also get to pick booth position first.  First come, first pick. This is the best deal on the Internet folks. More here or email us at sponsors at saastrinc dot com   Screen Shot 2017-03-31 at 9.03.08 AM

SaaStr Podcast #108: Peter Gassner, Founder & CEO @ Veeva Systems On Growing to $500m in ARR

podcast-featured-108-Peter Gassner Welcome to Episode 108! Peter Gassner is the Founder & CEO of Veeva Systems, the industry cloud for life science systems. With just $4m in capital raised, Peter has taken Veeva to almost $500m in ARR and a prominent force in the rising tide of enterprise SaaS. As for Peter, prior to Veeva, Peter was a Senior Vice President of Technology at Salesforce where he experienced the successful IPO of the company and their rise into the most successful SaaS platform in the industry. Before Salesforce, Peter was with PeopleSoft for 9 years where he led a team of 450 professionals to support PeopleSoft’s technology platform. I do also want to say a big thank you to Jason Lemkin for the intro to Peter today, without which the episode would not have been possible. Peter-Gassner_320x3201In today’s episode you will learn:

Psychology Says: Make Your Pricing Fair (or at least appear that way)

Most of us want to feel that we are both being treated fairly and treating others in kind. And sure, some people are always looking for an edge, but humans by nature prefer deals that seem reasonably equitable. And it’s this preference that can have a huge impact on your pricing and how you present it. In behavioral economics, this desire for equity is demonstrated in an experiment where people pair off and one person is given say $10. The first person has to offer to share some of that money with the second person. The second person can then accept the first person’s offer or reject the whole situation and return the $10 bill so that both parties get nothing. Try this with your team and see what happens. Most people will offer between $3 and $5. Almost everyone accepts this offer (a few people will reject $3 or
Continue reading "Psychology Says: Make Your Pricing Fair (or at least appear that way)"