SlideShare a Scribd company logo
1 of 42
Download to read offline
Tom Tunguz
Redpoint Ventures
tomtunguz.com
$3.5B under
management
Offices in California
and China
Seed, Series A, B
and Growth
Investments
How the Fundraising
Market is Evolving
VC Fundraising is Steady; 2014 Strong
Start at $8B+ in Q1
Meanwhile, VC investments also steady at
10 year mean of $25B
And average investment size is stable to
up
But Consumer Publics are down 25%
And the fall has been broad-based
Enterprise has been hit harder, falling 40%
Depressing Multiples from All Time Highs
• Public markets depressing multiples…
• But the venture market is increasingly competitive
among venture firms who are raising a constant
amount of dollars
• Net effect: relative stability in the fundraising market
Two Forces in Tension
Startups Are Markedly
More Capital Efficient
Tom Tunguz Talk at Wharton San Francisco
IPO Cohort
Average
ROIC
Median
ROIC
Count
1998 0.82 0.82 2
2002 1.05 0.88 6
2006 1.78 1.15 13
2010 2.00 1.24 15
Startups today require half the capital to
go public compared to 12 years ago
2010 Cohort
Segment
Average ROIC Median ROIC
ROIC <= 2 1.04 1.00
ROIC > 2 13.5 4.80
Certain segments are unbelievably capital
efficient
• Recent IPOs are 2x more VC dollar efficient as their
older brothers
• Outliers require negligible capital before IPO
because of more efficient avenues of customer
acquisition
• Net effect: startups need to raise less capital and will
require a different pattern of financing
Startups are far more capital efficient than
they used to be
Is Seed the New A?
Seed investment dollars has tripled in 4
years to $1.5B in 2013
And while angel rounds have increased
some…
VCs involvement in rounds increases round
size by 400%
Top quartile seeds, aka MegaSeeds are
larger than most series As
MegaSeeds show no signs of slowing
down. VCs buying early access to startups.
Consequently, the MegaSeed has replaced
the traditional Series A
• VCs have 4x’ed the size of a traditional angel-only
seed round
• VC dollars have created a new category of seed
investment, the MegaSeed which has replaced the
Series A
• Net effect: Series A investment sizes have
increased because capital startups are further along
than before
Competition in the VC market has pushed
VCs to invest in seeds
Startup Fundraising
Playbook
Larger seeds correlated to higher chances
of raising a Series A
Larger seeds are better and equally as
common as smaller seeds
Metric Angel Seeds VC Seeds
Series A Success Rate 33% 54%
Mean Seed Raised $M 1.3 1.6
Median Seed Raised $M 1.2 1.5
Mean Series A Raised $M 7.3 7.4
Median Series A Raised
$M
5.3 6.0
Raising seed from VCs increases seed
round size but no impact on Series A
Metric
Insider VC
Leads A
All VC Seeds
Mean Seed Raised
$M
1.6 1.6
Median Seed Raised
$M
1.5 1.5
Mean Series A
Raised $M
7.2 7.4
Median Series A
Raised $M
5.8 6.0
Signaling risk is zero for companies who
are able to raise Series A
Q4 is the least attractive time to raise a
seed
• Raise more than $900k
• Easier to do with VC involvement. Typical round has
1.6 VCs
• Raise earlier in the year if you can
Best practices for raising a seed
Impact of Increasing Seed
Investment in Follow On
Rounds
More seed dollars = more seed companies
= more series A competition
Series As rising. Crunch is in the Series B.
$5-$10M Series As have 2xed in 4 years
But Series Bs are flat across the board
Huge increase in the number of Mega
Rounds
• Series A investment up 200%, responding to
increase in company formation and seed companies
• Series B flat, creating a crunch for follow-ons
• Clear winners able to delay IPO/M&A for years
because of IPO-sized rounds available in the private
markets
• Net effect: Winners have access to tons of capital.
Others may struggle with the Series B crunch.
Series A and B and later rounds are in flux
Tom Tunguz Talk at Wharton San Francisco
Appendix
qs
Tom Tunguz Talk at Wharton San Francisco

More Related Content

What's hot

Saas business model for digital agencies
Saas business model for digital agenciesSaas business model for digital agencies
Saas business model for digital agenciesCognitives Team
 
Get inside your Buyers Head - Improve Funnel Conversion Rates
Get inside your Buyers Head - Improve Funnel Conversion RatesGet inside your Buyers Head - Improve Funnel Conversion Rates
Get inside your Buyers Head - Improve Funnel Conversion RatesDavid Skok
 
Aligning Sales, Marketing, and CS to Scale Revenue and Retention with Showpad
Aligning Sales, Marketing, and CS to Scale Revenue and Retention with ShowpadAligning Sales, Marketing, and CS to Scale Revenue and Retention with Showpad
Aligning Sales, Marketing, and CS to Scale Revenue and Retention with Showpadsaastr
 
WebSummit 2018 - The SaaS Business Model & Metrics
WebSummit 2018 - The SaaS Business Model & MetricsWebSummit 2018 - The SaaS Business Model & Metrics
WebSummit 2018 - The SaaS Business Model & MetricsDavid Skok
 
SaaStr at Dreamforce '14: The Entrepreneur's Survival Guide (The Best of Saa...
SaaStr at Dreamforce '14:  The Entrepreneur's Survival Guide (The Best of Saa...SaaStr at Dreamforce '14:  The Entrepreneur's Survival Guide (The Best of Saa...
SaaStr at Dreamforce '14: The Entrepreneur's Survival Guide (The Best of Saa...stormventures
 
The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CE...
The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CE...The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CE...
The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CE...saastr
 
De-Risking Your Startup -- SaaStr 2017 Talk
De-Risking Your Startup -- SaaStr 2017 TalkDe-Risking Your Startup -- SaaStr 2017 Talk
De-Risking Your Startup -- SaaStr 2017 TalkLeo Polovets
 
Matrix partners, David Skok
Matrix partners, David SkokMatrix partners, David Skok
Matrix partners, David SkokMassTLC
 
KPI analytics for saas startups
KPI analytics for saas startupsKPI analytics for saas startups
KPI analytics for saas startupsArtyom Efremov
 
The SaaS Founder’s Journey: What Matters at Each Stage
The SaaS Founder’s Journey: What Matters at Each StageThe SaaS Founder’s Journey: What Matters at Each Stage
The SaaS Founder’s Journey: What Matters at Each StageDavid Skok
 
Demystifying the Role of a CFO
Demystifying the Role of a CFODemystifying the Role of a CFO
Demystifying the Role of a CFOsaastr
 
Bootstrap or Raise: Lessons from a Founder who did Both with Arkadium
Bootstrap or Raise:  Lessons from a Founder who did Both with ArkadiumBootstrap or Raise:  Lessons from a Founder who did Both with Arkadium
Bootstrap or Raise: Lessons from a Founder who did Both with Arkadiumsaastr
 
A High Growth SaaS Playbook - 12 Metrics to Drive Success
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessA High Growth SaaS Playbook - 12 Metrics to Drive Success
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessSaaStock
 
"Numbers That Actually Matter For Founders"
"Numbers That Actually Matter For Founders""Numbers That Actually Matter For Founders"
"Numbers That Actually Matter For Founders"saastr
 
SaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaS
SaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaSSaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaS
SaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaSDave Kellogg
 
Jumpstart: 10 Things I'd Do Even Better: More Lessons Learned with Shasta Ven...
Jumpstart: 10 Things I'd Do Even Better: More Lessons Learned with Shasta Ven...Jumpstart: 10 Things I'd Do Even Better: More Lessons Learned with Shasta Ven...
Jumpstart: 10 Things I'd Do Even Better: More Lessons Learned with Shasta Ven...saastr
 

What's hot (20)

EIA 2015 Start-up KPIs from Scoro
EIA 2015 Start-up KPIs from ScoroEIA 2015 Start-up KPIs from Scoro
EIA 2015 Start-up KPIs from Scoro
 
SaaS Metrics
SaaS MetricsSaaS Metrics
SaaS Metrics
 
Saas business model for digital agencies
Saas business model for digital agenciesSaas business model for digital agencies
Saas business model for digital agencies
 
Get inside your Buyers Head - Improve Funnel Conversion Rates
Get inside your Buyers Head - Improve Funnel Conversion RatesGet inside your Buyers Head - Improve Funnel Conversion Rates
Get inside your Buyers Head - Improve Funnel Conversion Rates
 
Aligning Sales, Marketing, and CS to Scale Revenue and Retention with Showpad
Aligning Sales, Marketing, and CS to Scale Revenue and Retention with ShowpadAligning Sales, Marketing, and CS to Scale Revenue and Retention with Showpad
Aligning Sales, Marketing, and CS to Scale Revenue and Retention with Showpad
 
EIA 2015 How VC Funding Works
EIA 2015 How VC Funding WorksEIA 2015 How VC Funding Works
EIA 2015 How VC Funding Works
 
WebSummit 2018 - The SaaS Business Model & Metrics
WebSummit 2018 - The SaaS Business Model & MetricsWebSummit 2018 - The SaaS Business Model & Metrics
WebSummit 2018 - The SaaS Business Model & Metrics
 
SaaStr at Dreamforce '14: The Entrepreneur's Survival Guide (The Best of Saa...
SaaStr at Dreamforce '14:  The Entrepreneur's Survival Guide (The Best of Saa...SaaStr at Dreamforce '14:  The Entrepreneur's Survival Guide (The Best of Saa...
SaaStr at Dreamforce '14: The Entrepreneur's Survival Guide (The Best of Saa...
 
The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CE...
The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CE...The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CE...
The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CE...
 
De-Risking Your Startup -- SaaStr 2017 Talk
De-Risking Your Startup -- SaaStr 2017 TalkDe-Risking Your Startup -- SaaStr 2017 Talk
De-Risking Your Startup -- SaaStr 2017 Talk
 
Matrix partners, David Skok
Matrix partners, David SkokMatrix partners, David Skok
Matrix partners, David Skok
 
KPI analytics for saas startups
KPI analytics for saas startupsKPI analytics for saas startups
KPI analytics for saas startups
 
The SaaS Founder’s Journey: What Matters at Each Stage
The SaaS Founder’s Journey: What Matters at Each StageThe SaaS Founder’s Journey: What Matters at Each Stage
The SaaS Founder’s Journey: What Matters at Each Stage
 
Demystifying the Role of a CFO
Demystifying the Role of a CFODemystifying the Role of a CFO
Demystifying the Role of a CFO
 
Bootstrap or Raise: Lessons from a Founder who did Both with Arkadium
Bootstrap or Raise:  Lessons from a Founder who did Both with ArkadiumBootstrap or Raise:  Lessons from a Founder who did Both with Arkadium
Bootstrap or Raise: Lessons from a Founder who did Both with Arkadium
 
A High Growth SaaS Playbook - 12 Metrics to Drive Success
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessA High Growth SaaS Playbook - 12 Metrics to Drive Success
A High Growth SaaS Playbook - 12 Metrics to Drive Success
 
A Deck, Deck.
A Deck, Deck.A Deck, Deck.
A Deck, Deck.
 
"Numbers That Actually Matter For Founders"
"Numbers That Actually Matter For Founders""Numbers That Actually Matter For Founders"
"Numbers That Actually Matter For Founders"
 
SaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaS
SaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaSSaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaS
SaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaS
 
Jumpstart: 10 Things I'd Do Even Better: More Lessons Learned with Shasta Ven...
Jumpstart: 10 Things I'd Do Even Better: More Lessons Learned with Shasta Ven...Jumpstart: 10 Things I'd Do Even Better: More Lessons Learned with Shasta Ven...
Jumpstart: 10 Things I'd Do Even Better: More Lessons Learned with Shasta Ven...
 

Viewers also liked

How (and When) to Hire a Great VP of Customer Success Management CSM
How (and When) to Hire a Great VP of Customer Success Management CSMHow (and When) to Hire a Great VP of Customer Success Management CSM
How (and When) to Hire a Great VP of Customer Success Management CSMGainsight
 
SaaStr at Dreamforce '14: Benchmarking Your Start-Up: How Am I Doing -- Rea...
SaaStr at Dreamforce '14:  Benchmarking Your Start-Up:  How Am I Doing -- Rea...SaaStr at Dreamforce '14:  Benchmarking Your Start-Up:  How Am I Doing -- Rea...
SaaStr at Dreamforce '14: Benchmarking Your Start-Up: How Am I Doing -- Rea...stormventures
 
How to Develop Your SaaS Pricing Model
How to Develop Your SaaS Pricing ModelHow to Develop Your SaaS Pricing Model
How to Develop Your SaaS Pricing ModelLincoln Murphy
 
SaaS Accounting: The blueprint to understanding and optimizing
SaaS Accounting: The blueprint to understanding and optimizingSaaS Accounting: The blueprint to understanding and optimizing
SaaS Accounting: The blueprint to understanding and optimizingPrice Intelligently
 
A SaaS Metric designed to Increase Free Trial Conversions
A SaaS Metric designed to Increase Free Trial ConversionsA SaaS Metric designed to Increase Free Trial Conversions
A SaaS Metric designed to Increase Free Trial ConversionsLincoln Murphy
 
How to Drive Growth with Customer Success Metrics
How to Drive Growth with Customer Success MetricsHow to Drive Growth with Customer Success Metrics
How to Drive Growth with Customer Success MetricsGainsight
 
Go-to-Market Best Practices for Startups
Go-to-Market Best Practices for StartupsGo-to-Market Best Practices for Startups
Go-to-Market Best Practices for Startupsa16z
 
Lean Analytics Cycle
Lean Analytics CycleLean Analytics Cycle
Lean Analytics CycleHiten Shah
 
9 Worst Practices in SaaS Metrics
9 Worst Practices in SaaS Metrics9 Worst Practices in SaaS Metrics
9 Worst Practices in SaaS MetricsChristoph Janz
 
SaaS Marketing Plan: 5 Ways to Get your B2B App to Sell Itself
SaaS Marketing Plan: 5 Ways to Get your B2B App to Sell ItselfSaaS Marketing Plan: 5 Ways to Get your B2B App to Sell Itself
SaaS Marketing Plan: 5 Ways to Get your B2B App to Sell ItselfLincoln Murphy
 
Go to-market strategy for B2B SaaS companies
Go to-market strategy for B2B SaaS companiesGo to-market strategy for B2B SaaS companies
Go to-market strategy for B2B SaaS companiesGuillaume Lerouge
 
The Digital Telecom. Cloud Services
The Digital Telecom. Cloud ServicesThe Digital Telecom. Cloud Services
The Digital Telecom. Cloud ServicesParviz Iskhakov
 
Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]
Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]
Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]Point Nine Capital
 
Making a Marketplace: A Checklist for Online Disruption
Making a Marketplace: A Checklist for Online DisruptionMaking a Marketplace: A Checklist for Online Disruption
Making a Marketplace: A Checklist for Online DisruptionNir Eyal
 
Telecom SaaS Billing Solutions Case Study
Telecom SaaS Billing Solutions Case StudyTelecom SaaS Billing Solutions Case Study
Telecom SaaS Billing Solutions Case StudyAtul Gulrajani
 
Empower your SaaS with a Marketplace
Empower your SaaS with a MarketplaceEmpower your SaaS with a Marketplace
Empower your SaaS with a MarketplaceAnji Ismail
 

Viewers also liked (20)

What is Pipeline Marketing
What is Pipeline Marketing What is Pipeline Marketing
What is Pipeline Marketing
 
How (and When) to Hire a Great VP of Customer Success Management CSM
How (and When) to Hire a Great VP of Customer Success Management CSMHow (and When) to Hire a Great VP of Customer Success Management CSM
How (and When) to Hire a Great VP of Customer Success Management CSM
 
SaaStr at Dreamforce '14: Benchmarking Your Start-Up: How Am I Doing -- Rea...
SaaStr at Dreamforce '14:  Benchmarking Your Start-Up:  How Am I Doing -- Rea...SaaStr at Dreamforce '14:  Benchmarking Your Start-Up:  How Am I Doing -- Rea...
SaaStr at Dreamforce '14: Benchmarking Your Start-Up: How Am I Doing -- Rea...
 
How to Develop Your SaaS Pricing Model
How to Develop Your SaaS Pricing ModelHow to Develop Your SaaS Pricing Model
How to Develop Your SaaS Pricing Model
 
SaaS Accounting: The blueprint to understanding and optimizing
SaaS Accounting: The blueprint to understanding and optimizingSaaS Accounting: The blueprint to understanding and optimizing
SaaS Accounting: The blueprint to understanding and optimizing
 
The Secrets to SaaS Pricing
The Secrets to SaaS PricingThe Secrets to SaaS Pricing
The Secrets to SaaS Pricing
 
A SaaS Metric designed to Increase Free Trial Conversions
A SaaS Metric designed to Increase Free Trial ConversionsA SaaS Metric designed to Increase Free Trial Conversions
A SaaS Metric designed to Increase Free Trial Conversions
 
How to Drive Growth with Customer Success Metrics
How to Drive Growth with Customer Success MetricsHow to Drive Growth with Customer Success Metrics
How to Drive Growth with Customer Success Metrics
 
Go-to-Market Best Practices for Startups
Go-to-Market Best Practices for StartupsGo-to-Market Best Practices for Startups
Go-to-Market Best Practices for Startups
 
Lean Analytics Cycle
Lean Analytics CycleLean Analytics Cycle
Lean Analytics Cycle
 
9 Worst Practices in SaaS Metrics
9 Worst Practices in SaaS Metrics9 Worst Practices in SaaS Metrics
9 Worst Practices in SaaS Metrics
 
SaaS Marketing Plan: 5 Ways to Get your B2B App to Sell Itself
SaaS Marketing Plan: 5 Ways to Get your B2B App to Sell ItselfSaaS Marketing Plan: 5 Ways to Get your B2B App to Sell Itself
SaaS Marketing Plan: 5 Ways to Get your B2B App to Sell Itself
 
Go to-market strategy for B2B SaaS companies
Go to-market strategy for B2B SaaS companiesGo to-market strategy for B2B SaaS companies
Go to-market strategy for B2B SaaS companies
 
Go-to-Market Strategy vs Marketing Strategy
Go-to-Market Strategy vs Marketing StrategyGo-to-Market Strategy vs Marketing Strategy
Go-to-Market Strategy vs Marketing Strategy
 
The Digital Telecom. Cloud Services
The Digital Telecom. Cloud ServicesThe Digital Telecom. Cloud Services
The Digital Telecom. Cloud Services
 
Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]
Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]
Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]
 
Making a Marketplace: A Checklist for Online Disruption
Making a Marketplace: A Checklist for Online DisruptionMaking a Marketplace: A Checklist for Online Disruption
Making a Marketplace: A Checklist for Online Disruption
 
Telecom SaaS Billing Solutions Case Study
Telecom SaaS Billing Solutions Case StudyTelecom SaaS Billing Solutions Case Study
Telecom SaaS Billing Solutions Case Study
 
Empower your SaaS with a Marketplace
Empower your SaaS with a MarketplaceEmpower your SaaS with a Marketplace
Empower your SaaS with a Marketplace
 
A Guide to Marketplaces
A Guide to MarketplacesA Guide to Marketplaces
A Guide to Marketplaces
 

Similar to Tom Tunguz Talk at Wharton San Francisco

SAC Learning Series Angel Investing 101
SAC Learning Series Angel Investing 101 SAC Learning Series Angel Investing 101
SAC Learning Series Angel Investing 101 Elaine Werffeli
 
Angel investing 101: An Introduction to Angel Investing Aug 2019 SS
Angel investing 101: An Introduction to Angel Investing Aug 2019 SSAngel investing 101: An Introduction to Angel Investing Aug 2019 SS
Angel investing 101: An Introduction to Angel Investing Aug 2019 SSElaine Werffeli
 
Startups in "Valley of Death"- from Singapore incubator
Startups in "Valley of Death"- from Singapore incubatorStartups in "Valley of Death"- from Singapore incubator
Startups in "Valley of Death"- from Singapore incubatorNadezda Guzovina
 
Elton satusky trends in startups
Elton satusky trends in startupsElton satusky trends in startups
Elton satusky trends in startupsLeo Rogers
 
Becoming an Angel Investor
Becoming an Angel InvestorBecoming an Angel Investor
Becoming an Angel InvestorElaine Werffeli
 
REMIX SUMMIT- Alysia Wanczyk, Marketing Director, Seedrs
REMIX SUMMIT- Alysia Wanczyk, Marketing Director, SeedrsREMIX SUMMIT- Alysia Wanczyk, Marketing Director, Seedrs
REMIX SUMMIT- Alysia Wanczyk, Marketing Director, SeedrsToby Kress
 
Alpaca VC DNVB Assessment 2020
Alpaca VC DNVB Assessment 2020Alpaca VC DNVB Assessment 2020
Alpaca VC DNVB Assessment 2020Aubrie Pagano
 
Thefundedsick 1226521688868759-8
Thefundedsick 1226521688868759-8Thefundedsick 1226521688868759-8
Thefundedsick 1226521688868759-8Jose Gonzalez
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 finalMark Suster
 
Raising Capital For Your Startup
Raising Capital For Your StartupRaising Capital For Your Startup
Raising Capital For Your StartupMelissa Fisher, CFE
 
[PreMoney SF 2015] SoftTech VC >> Jeff Clavier, "Fund-Raising The Roof: How T...
[PreMoney SF 2015] SoftTech VC >> Jeff Clavier, "Fund-Raising The Roof: How T...[PreMoney SF 2015] SoftTech VC >> Jeff Clavier, "Fund-Raising The Roof: How T...
[PreMoney SF 2015] SoftTech VC >> Jeff Clavier, "Fund-Raising The Roof: How T...500 Startups
 
Venture Capital 101
Venture Capital 101Venture Capital 101
Venture Capital 101Eventbrite
 
TheFunded - Canarie
TheFunded - CanarieTheFunded - Canarie
TheFunded - Canarieguest1c3ad
 
US Investors: From Early Stage to Series A
US Investors: From Early Stage to Series AUS Investors: From Early Stage to Series A
US Investors: From Early Stage to Series ADavid Shen
 
Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Dave McClure
 
Michigan Energy Forum - June 7, 2012 - Jeff Bocan
Michigan Energy Forum - June 7, 2012 -  Jeff Bocan Michigan Energy Forum - June 7, 2012 -  Jeff Bocan
Michigan Energy Forum - June 7, 2012 - Jeff Bocan AnnArborSPARK
 
Angel and Venture fundraising - A 360 perspective
Angel and Venture fundraising - A 360 perspectiveAngel and Venture fundraising - A 360 perspective
Angel and Venture fundraising - A 360 perspectiveRavi Trivedi
 
Vcic Prep Session Vc 101
Vcic Prep Session Vc 101Vcic Prep Session Vc 101
Vcic Prep Session Vc 101ClimbChen
 

Similar to Tom Tunguz Talk at Wharton San Francisco (20)

SAC Learning Series Angel Investing 101
SAC Learning Series Angel Investing 101 SAC Learning Series Angel Investing 101
SAC Learning Series Angel Investing 101
 
Angel investing 101: An Introduction to Angel Investing Aug 2019 SS
Angel investing 101: An Introduction to Angel Investing Aug 2019 SSAngel investing 101: An Introduction to Angel Investing Aug 2019 SS
Angel investing 101: An Introduction to Angel Investing Aug 2019 SS
 
Startups in "Valley of Death"- from Singapore incubator
Startups in "Valley of Death"- from Singapore incubatorStartups in "Valley of Death"- from Singapore incubator
Startups in "Valley of Death"- from Singapore incubator
 
Elton satusky trends in startups
Elton satusky trends in startupsElton satusky trends in startups
Elton satusky trends in startups
 
Becoming an Angel Investor
Becoming an Angel InvestorBecoming an Angel Investor
Becoming an Angel Investor
 
REMIX SUMMIT- Alysia Wanczyk, Marketing Director, Seedrs
REMIX SUMMIT- Alysia Wanczyk, Marketing Director, SeedrsREMIX SUMMIT- Alysia Wanczyk, Marketing Director, Seedrs
REMIX SUMMIT- Alysia Wanczyk, Marketing Director, Seedrs
 
Alpaca VC DNVB Assessment 2020
Alpaca VC DNVB Assessment 2020Alpaca VC DNVB Assessment 2020
Alpaca VC DNVB Assessment 2020
 
Thefundedsick 1226521688868759-8
Thefundedsick 1226521688868759-8Thefundedsick 1226521688868759-8
Thefundedsick 1226521688868759-8
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 final
 
Raising Capital For Your Startup
Raising Capital For Your StartupRaising Capital For Your Startup
Raising Capital For Your Startup
 
Incubes Presentation Accessing Capital From An Angel Investors 2012 08 08
Incubes Presentation Accessing Capital From An Angel Investors 2012 08 08Incubes Presentation Accessing Capital From An Angel Investors 2012 08 08
Incubes Presentation Accessing Capital From An Angel Investors 2012 08 08
 
Incubes presentation accessing capital from an angel investors 2013 01 30
Incubes presentation accessing capital from an angel investors 2013 01 30Incubes presentation accessing capital from an angel investors 2013 01 30
Incubes presentation accessing capital from an angel investors 2013 01 30
 
[PreMoney SF 2015] SoftTech VC >> Jeff Clavier, "Fund-Raising The Roof: How T...
[PreMoney SF 2015] SoftTech VC >> Jeff Clavier, "Fund-Raising The Roof: How T...[PreMoney SF 2015] SoftTech VC >> Jeff Clavier, "Fund-Raising The Roof: How T...
[PreMoney SF 2015] SoftTech VC >> Jeff Clavier, "Fund-Raising The Roof: How T...
 
Venture Capital 101
Venture Capital 101Venture Capital 101
Venture Capital 101
 
TheFunded - Canarie
TheFunded - CanarieTheFunded - Canarie
TheFunded - Canarie
 
US Investors: From Early Stage to Series A
US Investors: From Early Stage to Series AUS Investors: From Early Stage to Series A
US Investors: From Early Stage to Series A
 
Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona
 
Michigan Energy Forum - June 7, 2012 - Jeff Bocan
Michigan Energy Forum - June 7, 2012 -  Jeff Bocan Michigan Energy Forum - June 7, 2012 -  Jeff Bocan
Michigan Energy Forum - June 7, 2012 - Jeff Bocan
 
Angel and Venture fundraising - A 360 perspective
Angel and Venture fundraising - A 360 perspectiveAngel and Venture fundraising - A 360 perspective
Angel and Venture fundraising - A 360 perspective
 
Vcic Prep Session Vc 101
Vcic Prep Session Vc 101Vcic Prep Session Vc 101
Vcic Prep Session Vc 101
 

Recently uploaded

Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop AG
 
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFWWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFMichael Claudio
 
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper PotentialAdvancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper Potentialnicola_mining
 
Terna Capital Markets Day 2024 Presentation
Terna Capital Markets Day 2024 PresentationTerna Capital Markets Day 2024 Presentation
Terna Capital Markets Day 2024 PresentationTerna SpA
 
Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop AG
 
Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024nicola_mining
 
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd
 

Recently uploaded (7)

Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023
 
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFWWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
 
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper PotentialAdvancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
 
Terna Capital Markets Day 2024 Presentation
Terna Capital Markets Day 2024 PresentationTerna Capital Markets Day 2024 Presentation
Terna Capital Markets Day 2024 Presentation
 
Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24
 
Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024
 
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
 

Tom Tunguz Talk at Wharton San Francisco

Editor's Notes

  1. > let me tell you a bit about redpoint highlights of the portfolio companies lots of enterprise investments, about 80% of our investments in our latest fund are enterprise > thanks for having me today. my goal is
  2. Dollars entering VC not anywhere close to the bubble Operating at or below median for the past 5 years 2014 strong start. Q1 figure is 8B. Holding the same pace would imply $32B which would be the second highest year since the bubble
  3. Dollars going out is relatively constant
  4. So the fund raising market is relatively stable
  5. In contrast there has been quite a bit of public market volatility Mean share price is down 25% in consumer tech over the past six months
  6. Trend has been broad-based across all different industries. Real Estate is the only sector that has out-performed relatively speaking.
  7. Same story but worse in enterprise. Here is a basket of about 30 publicly traded software companies, down 40%. Again all of these companies have been hard hit.
  8. Historical TEV/NTMR for software in the mid-aughts has been 4-5x. We’ve seen run-up and then a correction. It’s unclear what the “right” or long term multiple is. But SaaS in particular, huge opportunity. Only 2-3% of all IT spend dollars are spent on SaaS. At least a 10x upside from here.
  9. http://tomtunguz.com/the-hardest-round-to-raise/
  10. > let me tell you a bit about redpoint highlights of the portfolio companies lots of enterprise investments, about 80% of our investments in our latest fund are enterprise > thanks for having me today. my goal is
  11. http://tomtunguz.com/mrr-growth/