So Pitchbook has some new data out on how much M&A of VC-backed start-ups … is by other VC-backed start-ups.

And it’s a record: 33.7% of all VC-backed start-ups that are acquired are by VC-backed buyers. Up from 20% in 2018. 

Now this isn’t necessarily bad:

• First, it’s not new.  20% of deals even in 2018 were start-ups buying start-ups.
• And the dollar value has gone up, it’s doubled since 2018, although down from a 2023 peak.
• And start-ups have gotten bigger.  So they can pay more..  Stripe, Databricks, etc. have done $1B+ acquisitions before their IPO.
• Sometimes, it gives you a chance to double down.  Get bought for stock early by Coinbase or Snowflake, sometimes the value can grow dramatically after the acquisition. Sometimes.

But a lot of these deals may be sort of “better than nothing” deals.  Better than shutting down. Better than running out of money. And they often are better than that.

Either way, a lot of this is start-ups looking for an exit … finding it at another start-up.

So if nothing else, build those relationships too. Not just with the big public Cloud companies.

Hey SaaStr Fans,

We're less than 60 days away from 2025 SaaStrAnnual.com and yes, it will be here before you know it!  May 13-15 in SF Bay!!

Yes, there will be 10,000 of the best in SaaS, AI and Cloud there.  And yes, it’s a chance to meet and learn from the best.

But time is precious. 

Here are 10 reasons you should come:

1. Unparalleled Networking Opportunities
2. The Best Speakers In The World
3. Investor Connections and Funding Opportunities — And $500k-$5m AI VC Pitch Stage!!
4. Meet and Find Your Next VP / CXO!
5. Competitive Intelligence and Market Insights and New!! AI Demo Stage
6. Accelerated Learning for Your Entire Team
7. Direct Access to The Best AI / Cloud / SaaS Tools and Services
8. Benchmark Data and Performance Metrics
9. Inspiration and Renewed Perspective
10. Immediate ROI Through Actionable Strategies

You may have seen the news that Google is making its biggest acquisition — by far — of Cloud and SaaS security leader Wiz for a stunning $32 Billion (!).  And it’s even more impressive than that. As it’s just 5 years after founding.  Woah.

In just 5 years Wiz has crossed $500m ARR, and as they were crossing the first $100m ARR, their first CRO Colin Jones joined Sam Blond on CRO Confidential did a deep dive on the learnings. It’s an incredible look back on scaling and more.

If you are always lazy you’ll fail, of course. At least in SaaS.

But … I think you can use a certain amount of “laziness” to pounce. On big opportunities.

I’ve gotten less lazy as I’ve gone from service provider -> startup exec -> startup founder -> VC -> Head of SaaStr community.

It’s not all good. I can no longer pounce.

When I founded my first start-up, I took months to decide if it made sense. I talked to all the potential customers, in person. I recruited the initial team. I talked to the VCs. Then and only then — I knew it would work. And then … I pounced.

As time as gone on, I’ve done less up front work before pouncing. Some of this is based on experience. But some of this is because there is just too much going on, too much crowding out of my brain.

I make decisions in a few minutes now if unimportant, a few months max if important. Max.

You can’t stay lazy forever and be a great founder. But being a bit lazy until you are in Go Forever mode has strategic advantages. If you can make the switch.

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

Unlock product growth with a solid integration strategy. Download our guide for info on tools, requirements, priorities and more.

Join SaaStr CEO and Founder Jason Lemkin and Chris Dean from Treasury Prime as they delve into the intricate world of Banking as a Service (BaaS) and FinTech. The discussion spans a host of critical topics, including the fallout from Silicon Valley Bank, the complexities of reconciliation, Synapse and Evolve's banking controversy, and the evolving financial landscape.

They also explore the resurgence of FinTech, the impact of AI on banking operations, and Treasury Prime's upcoming AI-powered operational tools. A must-watch for anyone interested in the future of banking and financial technology. 

How can a new start-up possibly take on a successful big market leader?  Today is the age of AI it seems like it’s easy. Leaders like Codeium and Clay and Mercor seem to have no issues taking on the incumbents.  But it’s not quite that simple — or easy.

Being fast helps. But the main advantage vs the Big Guys is you can pursue a market or opportunity that is not worth their time. Yet.

Big, established tech companies aren’t stupid, or ignorant. Not at all. They are as aware of tech trends than you are, usually. After all, they have all the customer data.  Every Big Tech Co has a massive AI initiative underway.

But so many things just aren’t worth their time … yet.

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