The Latest from SaaStr: There’s Lots of Dry Powder in Venture Today. But There is Zero Pressure to Deploy It.

So 2023 is a whole near world in venture. 

2022 was sort of a tale of 2 worlds.  At the start of 2022, things were still part of the Boom Times of 2021.  Unicorns were minted daily and weekly, and valuations were sky high.  By late Q1, it was over. 

And things just got tougher and tougher as the year went on.  Growth rounds essentially stopped. 

So far, things aren’t any better in 2023. 

But they are arguably calmer.  

Now, there’s just one point I think it’s important for founders to understand in 2023, and it’s both important and non-obvious:

Yes, there is tons of “dry powder” in venture today.  But now, with one exception, there is zero pressure to deploy it, to invest it.  None.

For at least 60%-80% of us, times are at least tougher than a year ago. Later stage venture capital has evaporated, and budgets are at least under more scrutiny.  Not for all of us, but most.

So what do you do?

Well, at a practical level, many SaaS companies are doing a Strategic Sales & Marketing Retreat.  While I get it, it’s important to understand the trade-offs.

What’s a Strategic Sales & Marketing Retreat?

• First, you tell marketing to only focus on initiatives that bring in revenue now, this quarter.
• Second, you slow or stop sales hiring.
• Third, you often increase quotas in sales.

This “flash diet” does work for many SaaS companies, at least the ones with mini-brands that are at scale.  At least, at first. 

Amidst oversaturated markets and economic downturns, how are SaaS companies navigating acquiring more users and hitting high-profit margins?

ClickUp has grown and found its voice in an industry of category players, with a staggering six million users within five years. Chief Creative Officer Melissa Rosenthal and Chief Growth Officer Gaurav Agarwal share the secret to ClickUp’s rapid growth through big bets and bold marketing tactics. 

99% of the time — don’t play games.

Just reach out.

I’ve now been the lead investor in 5 unicorns that reached out to me.

If you’re super hot, and have 10+ VCs already circling around, sure play some games. Maybe. Put together a data room, run a tight process, with a firm expiration date.

But that’s not 99% of us, especially not in the early days.  And especially not these days.

Reach out, follow up, be thoughtful but aggressive. That’s what the best CEOs do.

It's the 4th edition of SaaStr Europa,

and in 2023, we're taking the event to LONDON for the very first time! 

Come to SaaStr Europa 2023, 6-7 June, to connect with companies from all over the world at our premiere European community event. 

We've just crossed 600+ attendees already signed up to attend with all the holiday tickets and New Year energy. That means, we're on track to have the biggest SaaStr Europa yet! 

We'll have between 3,500-4,000 SaaS CEOs, Founders, Revenue Leaders and Investors all on-site by the time we get to the event in June. 

Come for the content, stay for the networking.

SaaStr Europa 2023 will feature top speakers from leading global SaaS companies, panel discussions, workshops, Braindates and more for you to learn about industry trends and the latest topics in SaaS. It's also a great place for you to connect with current + potential customers and investors and create meaningful partnerships.

When you hire a new VP, how much free reign do you give them in hiring?  Do you just let them building their teams?  Do you remain deeply involved in the process?

Founders and CEOs have very different answers here.

Personally, when I have a truly great VP, I do interview all their hires, and when I see issues, provide that feedback.  But I let them hire who they want.  And when I have a stretch VP, still learning, I still back them 100%.  

But realistically, I tell them about 50% of the hires they propose making aren’t a fit.  I’m more involved.

But however much you’re involved, I’ve realized there is sort of a golden run when you hire a new VP.

Join Jason Lemkin and Harry Stebbings as they take a deep dive on venture, sales, and much more.

It took me a while to figure this out.

When I started writing venture (vs. angel) checks, the last thing I wanted to do was take another Bored (sic) Seat.

As a CEO/founder, I saw board meetings as important accountability sessions, for me and especially the team, but beyond that, viewed them as a huge time sink.

Very few of my VCs as a founder ever added any “value” that I could see.

Then, as a founder-turned-investor, I viewed my job as helping. And getting out of the way. Not being a critic at a board meeting. And certainly not being anyone’s “boss”.

This edition of the SaaStr Daily is sponsored in part by Brex

Brex is reimagining corporate cards and spend management to help founders get fast access to 10-20 times higher credit limits, unlimited virtual cards, a no-fee business account, and built-in software. 

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