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The Latest SaaStr + 20VC: The Brutal Math of Venture Capital — What Every B2B Founder Needs to Know
- The article discusses the brutal math of venture capital and what every SaaS founder needs to know in 2025.
- Top-tier funds like Insight Partners can absorb massive losses, such as $500 million on Builder.ai, reflecting the power law investing dynamics.
- The acquisition of Jony Ive's design studio by OpenAI for $6.5 billion highlights the shifting talent economics in the tech industry.
- Data shows that 80% of 'zombie unicorns' are inflated by valuations, emphasizing the importance of revenue fundamentals for valuation.
- For IPOs, $300 million in annual recurring revenue (ARR) is now the new minimum requirement, with growth and profitability expectations.
- Seed funding is depicted as easy, but Series A funding is described as challenging, requiring sustainable growth and positive unit economics.
- Dilution is identified as a silent killer for SaaS founders, emphasizing the need for strategic equity allocation.
- The Y Combinator phenomenon showcases the significance of platform businesses in attracting venture capital.
- The AI disruption is highlighted by software companies delving into hardware, impacting user experience and revenue potential.
- To win the talent war, SaaS companies need to focus on mission, growth trajectory, and equity upside to compete effectively.
- Overall, the article emphasizes the shift in the venture landscape and provides a playbook for SaaS founders navigating the new rules.
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