So 2023 is a unique time in venture fundraising.  

We’re coming off a stretch in 2021 where VC capital hit crazy, record highs… and now is coming into multi-year lows.

It’s a time when SaaS and Cloud spend are also at record highs, and many Cloud leaders are still growing at strong rates … yet many startups have stopped growing at all.

And really worst of all is multiples.  

What public (and private) SaaS companies are valued at as a multiple of revenue.  They are at some of the lowest points of the past 7-8 years.  

And low multiples make fundraising hard.

It hit late stage first, because it’s hard to do high valuation late-stage deals when the company would likely be worth less if it IPO’d today.  Then it hit Series B and C.  It hit Series A last year.  

And now, it’s finally hitting Seed.  Seed is slowing down last, but it is slowing down.  Especially as Seed VCs are getting more and more nervous that no one is going to write the next check anymore.

People keep asking when we’ll get out of this downturn in venture. The truth is: It’s not a downturn—only a reset. For the people who haven’t been raising capital or haven’t seen this side of things since, say, 2018, they’ll probably think this is a terrible time. 

Black Mangroves Founder and Managing Director Arnaud Bonzom, and SaaStr Founder and CEO, Jason Lemkin answer some of the biggest questions about venture investing in 2023.

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

Increase customer retention, LTV and generate more revenue with Upzelo. Take a look at their live demo today. No sign-up is required.

I think it’s fairly easy.

Look for:

• Are they running an entire division or group (or more) on your product?
• Is the use case mission critical — even if niche? I.e., would the business be at risk if you went down or away?
• Is deploying your app a key initiative for your top stakeholder? Just ask if this is one of their top priorities for the year.

Then, go all in. Smother them with attention and love. Because they are probably already planning to use you for at least 3+ years off the bat. Make it a great experience, and they’ll likely not shop for another solution in those coming years.

So for several months we’ve been running incredible, live Workshop Wednesday’s almost every Wednesday at 10am PST, with time saved for great Q&A. Sign up for FREE here:

Let’s take a look back at 10 of the Best Workshop Wednesdays for you to catch up on:

#1.  Tomasz Tunguz of Theory Ventures: The Impact of Generative AI on Software
#2.  TigerEye and PlanGrid’s CEO: Lessons learned on the path to $100m ARR
#3. 5 Metrics Every SaaS Company Should Care About with Salesforce Ventures
#4: Gainsight CEO Nick Mehta: My Top 10 Mistakes In 10 Years
#5. 7 Things All Founders Should Know About Sales with Dave Kellogg
#6. 10 Things That Always Work in SaaS Marketing with SaaStr’s Jason Lemkin
#7. Sales-Led or Product-Led? Harness.io CRO On Why You Need Both
#8. Battery Ventures’ VP Brandon Gleklen on The Latest in SaaS Metrics
#9. Jack Altman CEO of Lattice: Things You THink as a First-Time Founder … That Just Ain’t So

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

Free trials and freemiums can be a powerful sales strategy. But it’s not a one-size fits all! Learn how to increase conversion by leveraging other PLG modules, such as sandbox product experiences, and show prospects how your product can solve their challenges. 

We’re less than 3 weeks away from SaaStr Europa in London, June 6-7!  Our 4th ever SaaStr Europa.  The first 2 were in Paris, last year was at the beach in sunny Barcelona, and finally, we’ve come to London!!

As always, we have an amazing agenda for you! Here are just a few of the top SaaS leaders that will be speaking.

Just meet.

Meet all your competitors.  You never know where it will go:

• It may help you head off a conflict later.  There can be a lot of drama as competition heats up.  If you know the other CEO, a quick phone call can often head off some issues.
• You might combine the companies later.  Every startup I’ve co-founder or been a part of, a competitor has offered to acquire us.
• You might find some way to work together.  Competitors today sometimes get even more competitive.  But other times, their missions can diverge over time.
• You have someone now you can call if there are issues.  See the first point.  It’s always better to know the person on the other side.
• You’ll probably in the end just both gain respect for each other, and for the market overall.  The best competitors genuinely respect others with the same passion for the customers and markets they do.
• Who knows.  You just don’t know what the future holds for either of you.

Of course — keep the super confidential stuff secret. But anything anyone could find with a Google search, or close to it, just share it.

There’s not as much to hide as you think, and often something to learn.

© SaaStr 2023

644 Emerson St. Suite 200, Palo Alto, CA, 94301

If you'd like to stop receiving the SaaStr Daily, click here