Surprising Data Points about the Venture Capital Market
Tomasz TunguzVenture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Surprising Data Points about the Venture Capital Market
Carta released their state of the market report. A few data points stood out to me Downrounds constitute 20% of all rounds, up 2x from historical norms. Bridge rounds account for 38% of all rounds in Q2. Cooley reported 2.9% of rounds recapitalized the company. Recaps effectively delete the previous cap table & start a new one. These are all signs of the harder fundraising times. The glass-half full view is that 80% of all rounds are flat or up. Time between rounds has jumped about 40%. Curiously, this is roughly consistent with the lengthening in sales cycles software companies are enduring with customers. Perhaps there’s a parallel in buyer psychology in software & in venture capital. Seed valuations remained relatively constant. Analyzing the data for yesterday’s post, I noticed the seed market weathered through the global financial crisis relatively unscathed, a parallel to today - both about a 15% drop in pre-money valuations. Last, employees have exercised options at the lowest rate since the dawn of Covid at 26%, down from 46% two years ago. In the public markets, executive share selling patterns can be important signals for investors. If employees buy more shares, they believe in the company. There’s a parallel for employee option exercise. I wonder if later-stage investors will begin to use employee exercise rate as an input to their diligence for this reason - especially during this next transition period where the capital markets plateau & renormalize. The greater the employee confidence in a business, the more compelled an investor could be to lead a round. |
Older messages
How Will a Venture Capital Recovery Feel? Observations from 2008
Monday, August 7, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. How Will a Venture Capital Recovery Feel? Observations from
Busting the Myth: Higher Funding Doesn't Mean Faster Hiring in Startups
Friday, August 4, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Busting the Myth: Higher Funding Doesn't Mean Faster Hiring
What the New Relic Sale Means for SaaS
Monday, July 31, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. What the New Relic Sale Means for SaaS Earlier today, New
The Paradox of AI and Data Roles: How Automation Will Increase Demand for Data Professionals
Friday, July 28, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Paradox of AI and Data Roles: How Automation Will Increase
The Pilgrims Raised 4 Rounds of Financing
Monday, July 24, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Pilgrims Raised 4 Rounds of Financing The Pilgrims who
You Might Also Like
🗞 What's New: YouTube just launched Hype to help small creators get discovered
Thursday, September 19, 2024
Also: Running newsletter ads!
SaaSHub Weekly - Sep 19
Thursday, September 19, 2024
SaaSHub Weekly - Sep 19 Featured and useful products Schedul Threads logo Schedul Threads Boost your Threads following, reach monetization status fast and automate your Threads content publishing for
95 new Shopify apps for you 🌟
Thursday, September 19, 2024
New Shopify apps hand-picked for you 🙌 Week 37 Sep 9, 2024 - Sep 16, 2024 New Shopify apps hand-picked for you 🙌 What's New at Shopify? 🌱 New granular staff permissions for Gift cards Improvement ⸱
[SaaS Club] How firing customers built a 7-figure SaaS
Thursday, September 19, 2024
The SaaS Club Newsletter Hey Reader Here's a quick round up of what's been going on at SaaS Club: In this week's newsletter: 🎧 Discover how firing customers fueled SaaS growth 📈 Turn
The MrBeast Guide
Thursday, September 19, 2024
Today's newsletter is brought to you by LCA. We help companies build their future. From new products to websites, apps, and AI solutions. We work with businesses doing $10M-$10B in revenue. We
Writing Software for Robots
Thursday, September 19, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Writing Software for Robots In a few years, most feature flags
KoppieOS, ScrapX, Notch, Magic Inspector, and Entyx
Thursday, September 19, 2024
KoppieOS, where Ai meets Personality. BetaList BetaList Daily Magic Inspector Automate browser testing in natural language KoppieOS KoppieOS, where Ai meets Personality. ScrapX Monitor your competitors
“I’m waiting for the right time”
Thursday, September 19, 2024
Read time: 1 min. 03 sec. "Hey Pat, can I talk to you for a second?" My buddy pulled me aside at a wedding last weekend. I already knew what he wanted to ask... "I really want to do what
Mastering Portfolio Construction
Thursday, September 19, 2024
How to build a strategy that maximizes returns. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
join me: Big Tech in Fintech
Thursday, September 19, 2024
thought you would be interested Hi there, Laura here, Principal Analyst at CB Insights. Thought you would be interested in this new briefing on big tech's activity in financial services. In under