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Venture Capital News
Saastr
3w
352
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Navan Files for IPO: The Opening of B2B IPO Floodgates?
- Navan, a corporate travel and expense management unicorn formerly known as TripActions, has confidentially filed for a U.S. initial public offering, potentially signaling the opening of IPO floodgates for B2B software companies.
- Founded in 2015, Navan transformed into a comprehensive spend management powerhouse amidst the pandemic by pivoting into expense management and payments, serving over 11,000 businesses globally including Zoom, Lyft, and Shopify.
- The IPO filing showcases Navan's impressive scale with close to $500 million in ARR, $300 million in annual revenue as of 2024, $9.2 billion valuation, and significant venture funding raised.
- Strategic leadership appointments and innovative products like Navan Connect suggest thorough IPO preparation and market readiness, aiming at achieving profitability in 2025.
- Navan's IPO filing comes amid a pivotal moment for enterprise software IPOs, with renewed investor appetite for growth-stage technology companies and an emphasis on sustainable unit economics.
- The potential success of Navan's IPO could spark a wave of B2B software offerings, including confirmed IPO candidates like Databricks and Discord, and potential candidates like Stripe and Canva.
- The broader tech IPO landscape extends beyond B2B SaaS companies to include AI giants, consumer/social platforms, and other major players, collectively representing over $1 trillion in combined valuations.
- Navan's path faces challenges, including recent market performance decline, business model dependencies on corporate travel volumes, and competition with fintech startups.
- Despite challenges, Navan's IPO timing appears favorable in a market that values sustainable economics, potentially marking an inflection point for enterprise software access to public markets.
- Navan's IPO could have broader implications, including stabilizing private market valuations, increasing late-stage venture funding, and providing liquidity for employees at unicorn companies.
- If Navan succeeds in the public markets, it could catalyze a revival in B2B IPO activity, encouraging other enterprise software companies to follow suit and accelerating IPO timelines across the sector.
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Medium
3w
143
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TAM, SAM, SOM: The Most Misunderstood Slide in Your Pitch Deck
- Entrepreneurs often misuse TAM, SAM, SOM in their pitch decks by either inflating the numbers or lacking a clear understanding of their significance.
- SOM (Serviceable Obtainable Market) represents the portion of SAM that can be captured in the next 1-3 years.
- Investors focus on SOM as it demonstrates a credible plan for gaining traction and sustainable growth.
- A bloated TAM without a realistic SOM indicates superficial research, while a well-supported SOM with growth assumptions showcases market understanding.
- It is crucial to align SOM with the go-to-market (GTM) strategy, ensuring it corresponds to sales and marketing efforts.
- Start by focusing on one segment of SOM, executing it effectively before expanding further.
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Saastr
3w
252
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How 1,000+ B2B Startups Are — And Aren’t — Growing. The Real Data.
- SaaS Capital's 14th annual survey analyzed growth rates across 1,000+ private B2B SaaS companies, revealing a 5% decline in median growth from 2023 to 2024.
- Returning to pre-pandemic levels of growth is seen as a positive shift, emphasizing sustainable growth over vanity metrics.
- The report highlights the impact of company size on growth benchmarks, emphasizing the importance of context when comparing growth rates.
- Net Revenue Retention is identified as a key metric driving growth, with companies achieving high NRR showing significantly higher median growth rates.
- Equity-backed companies grow faster than bootstrapped ones but incur higher costs, emphasizing the importance of unit economics over rapid growth.
- The survey outlines growth rates based on company age, advising companies to focus on different priorities at each stage of their lifecycle.
- SaaS industry trends suggest a shift towards profitability and sustainable business models over rapid growth at all costs.
- To succeed, founders and executives are urged to benchmark against peers, prioritize NRR, choose funding wisely, align strategies with company stage, and focus on sustainable growth.
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Medium
3w
436
The J-Curve Divergence: Standard VC vs. Deep Tech VC Performance (A Hypothesis)
- The J-curve illustrates the performance of a VC fund over time, with an initial decline followed by substantial returns from successful investments.
- Standard VC firms focus on high-growth potential startups in sectors like software and consumer goods, showing quicker returns compared to deep-tech companies.
- Standard VC J-curve displays a steeper initial decline with a faster ascent due to quicker exits and development cycles.
- Deep-tech VC firms invest in innovative ventures requiring significant R&D in fields like AI and biotechnology, leading to a different J-curve pattern.
- Deep-tech J-curve exhibits a deeper initial decline and a potentially higher upside compared to standard VC.
- Various factors beyond industry differences shape a VC firm's J-curve trajectory, influencing risk-return trade-offs.
- Data analysis from PitchBook and CrunchBase provides insights into the performance differences between standard VC and deep-tech VC.
- The comparison highlights the potential disparities in J-curve trajectories between the two types of VC firms.
- The risk-return trade-off is evident between standard VC and deep-tech VC, with the latter facing higher risk but potential for significantly higher returns.
- As venture capital landscape evolves, technological advancements and thematic VC firms could impact the J-curve dynamics.
- Understanding J-curves is crucial for investors and founders in making informed decisions about capital allocation and partnerships.
- Investors and founders can leverage insights into J-curves to align investment strategies and expectations with the characteristics of VC firms.
- Sapir Venture Partners emphasizes patient capital for investing in companies with long maturation periods to generate returns.
- The understanding of J-curves is essential for founders to assess VC firms and understand the drivers behind investment decisions.
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Medium
3w
136
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Before You Build Something New, Consider Buying Something Old
- Many of Africa's wealthiest individuals built their wealth by acquiring traditional industries rather than starting new businesses.
- Approximately 80% of Africa's billionaires made their wealth in sectors like cement, manufacturing, logistics, retail, mining, oil, and banking, as opposed to technology.
- Top companies in Africa are primarily dominated by traditional industries such as banks, energy, logistics, mining, and retail, with tech companies being the exception.
- The majority of Africa's informal sector also relies on traditional businesses like market stalls, small-scale farming, family-run logistics, and local manufacturing.
- Entrepreneurship Through Acquisition (ETA) is a pragmatic approach where businesses are acquired and then scaled with capital, capacity, and modern management.
- ETA addresses the economic risk of succession planning by acquiring small-to-medium-sized businesses in industries like manufacturing, logistics, food processing, B2B services, and construction.
- ETA combines innovation with existing industries to build real balance sheets and compound wealth.
- The next phase of wealth creation in Africa is seen to come from leveraging traditional economies rather than leapfrogging them.
- By investing in profitable traditional industries and modernizing them, Africa aims to absorb innovation into existing sectors for sustained growth.
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Medium
3w
17
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The Lean Startup Is No Longer Enough
- The Lean Startup philosophy emerged as a way to reduce waste and test assumptions early in a resource-constrained environment.
- With the rise of generative AI, tasks that once took weeks can now be completed in a fraction of the time.
- AI tools like GitHub Copilot and Vercel AI SDKs are enabling faster deployment and documentation of code.
- A significant portion of startup codebases are now generated by AI, shifting the focus from manual coding to strategic decision-making.
- The cost of iteration in software development is decreasing dramatically due to AI-driven efficiencies.
- The landscape of software development has evolved, emphasizing strategy and distribution over pure development speed.
- In an AI-native world, the software development cycle prioritizes fast testing, real user signals measurement, and rapid iteration.
- The internet has transitioned from open discovery platforms like Hacker News to gated ecosystems within social media and app stores.
- While Lean and Agile principles remain important, they are no longer sufficient strategies for modern software development and market entry.
- The rise of solo founder startups may be attributed to AI tools reducing the minimum viable team size and accelerating tasks previously requiring multiple roles.
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Saastr
3w
409
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Dear SaaStr: I’m a Seed Stage, First Time VP of Sales. What Should I Do To Be Successful?
- Congratulations on becoming a Seed Stage, First Time VP of Sales - a significant role.
- To succeed, master the product and Ideal Customer Profile (ICP) early on by understanding product value and customer needs.
- Focus on building pipeline aggressively through outbound efforts and tracking key metrics for conversion.
- Initially, sell the first $1M yourself to understand the sales cycle and refine the process.
- When hiring, prioritize quality over quantity, looking for adaptable talent, and avoid outsourcing the hiring process.
- Set achievable goals, collaborate closely with marketing and product teams, and track metrics diligently to refine strategies.
- Being relentless and resilient is key. Embrace experimentation, track performance, and iterate to improve continuously.
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24 Likes
Saastr
3w
186
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Dear SaaStr: What Should I Know As a First-Time Customer Success Manager?
- Customer Success Managers play a key role in revenue generation at B2B companies.
- Proactivity is essential in Customer Success to anticipate and address customer needs.
- Thorough product knowledge is crucial for Customer Success Managers to guide customers effectively.
- Metrics like churn, retention, NRR, GRR, and upsell rates are vital in evaluating success.
- Building strong relationships with customers and providing value beyond niceties is important.
- Strong organizational skills are necessary for early-stage CSMs juggling multiple responsibilities.
- Advocating for customers internally and bridging the gap between customers and the company is a key CSM responsibility.
- Driving net negative churn by increasing customer value is a goal for CSMs in SaaS.
- Customer Success Managers have the opportunity to shape customer perception and product usage.
- Genuine customer love and relationships are crucial for success as a CSM.
- By following these principles, CSMs can drive growth and become pivotal in company success.
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11 Likes
Medium
3w
348
InvestorBase: Bridging the Investor-Founder Knowledge Gap
- InvestorBase focuses on bridging the knowledge gap between investors and founders.
- The platform provides founders with educational resources like articles, guides, case studies, templates, and expert advice.
- Startup growth, fundraising, marketing, and scaling are among the topics covered on the platform.
- InvestorBase partners with industry experts, investors, and organizations to provide valuable knowledge.
- These collaborations ensure founders receive guidance from top professionals.
- The platform connects founders with a network that includes academic institutions like IIT Delhi and IIT Bombay.
- Meaningful collaborations and innovative environments are fostered through these connections.
- Whether a startup founder, investor, or enabler, InvestorBase welcomes all to join its ecosystem.
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20 Likes
Medium
3w
70
What Armenia Can Teach Us About Building a Resilient Innovation Economy
- Armenia, a country with a rich history, is rewriting its narrative and building a resilient innovation economy.
- Despite being landlocked and facing challenges like high logistics costs and limited market access, Armenia is making significant progress.
- The country declared independence from the Soviet Union in 1991, and it has a history marked by tragic events like the Armenian Genocide.
- Armenia's resilience is evident in its tech revolution, with initiatives like TUMO leading the way.
- TUMO, a learning center for teenagers, has a licensing model that allows other cities globally to replicate its success.
- The success of TUMO demonstrates the impact of investing in youth and their creative and technical potential.
- The article suggests the possibility of creating similar innovation hubs in other countries, like a Jamaican version of TUMO.
- This approach could empower youth in different regions and inspire innovation and growth.
- The concept of 'brain activation' is proposed as an alternative to 'brain drain,' focusing on nurturing talent and providing tools for success.
- The article showcases how Armenia's past struggles have not deterred its progress towards building a flourishing innovation ecosystem.
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4 Likes
Insider
3w
10.5k
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Viral AI 'cheating' startup Cluely lands $15 million led by Andreessen Horowitz
- Cluely, a startup promising to help users cheat, secured $15 million in funding led by Andreessen Horowitz.
- The company was founded earlier this year and aimed to assist users in 'cheating on everything.'
- Cluely's CEO, Roy Lee, mentioned a goal of reaching 1 billion views across all platforms.
- Initially, Cluely focused on aiding software engineers in cheating on job interviews, sparking controversy when Lee was suspended from Columbia University.
- The startup, though removing job interview cheating references, still provides 'undetectable' AI support for users.
- With the new funding, Cluely plans to heavily invest in marketing to achieve its reach goals.
- The startup has employed marketing strategies such as a humorous video and intends to hire 50 'growth interns' to create daily TikToks.
- Andresseen Horowitz's partner praised Cluely's founder for his innovative approach and fearlessness.
- Cluely's original investors, Abstract Ventures and Susa Ventures, who had previously raised $5.3 million, are also partaking in this new funding round.
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42 Likes
Medium
3w
26
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You’re Not Failing. You’re Just Measuring Success With the Wrong Metrics.
- Many individuals feel a sense of failure despite their efforts in posting, learning, and engaging.
- Relying on metrics like follower count, daily profits, and comparison to others can lead to feelings of inadequacy.
- Success should be evaluated based on personal fulfillment and alignment rather than external validation.
- Key points to redefine success: Peace after posting, prioritizing execution over expectations, monitoring sustainability, and ensuring internal alignment.
- Success is found in being true to oneself, maintaining clarity in direction, finding peace in quiet times, and achieving growth without compromising one's values.
- It's essential to question whether the pursuit is for visibility or value and not to let numbers determine self-worth.
- Individuals are encouraged to pause and redefine their definition of success, shifting the focus from external validation to personal fulfillment.
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1 Like
Saastr
3w
313
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The $14.8B AI Deal That “Makes No Sense,” IPO Pops, and Why Legacy B2B is Stuggling: The Latest SaaStr + 20VC Breakdown
- The latest 20VC podcast features discussions on AI acquisitions, IPO markets, and venture capital by industry veterans Rory O’Driscoll, Harry Stebbings, and Jason Lemkin.
- The $14.8B acquisition of Scale AI by Meta is deemed unconventional as Meta invested but received a special dividend, with questionable financial sense.
- Chime's successful IPO signals the reopening of the IPO window, impacting market psychology positively despite leaving money on the table.
- Ramp's $16B valuation raises questions on fintech valuations and the capital-intensive nature of such businesses.
- Founder-CEO changes like those potentially happening at Discord are discussed, emphasizing the importance of continuity for B2B companies' success.
- Legacy software companies face challenges in the AI-driven landscape, while new entrants like Glean show promise with agile strategies.
- The podcast ends with rapid-fire predictions on topics like Apple's potential US iPhone assembly and the S&P's positive finish odds.
- Key takeaways for B2B leaders include the significance of trust, IPO readiness, the risk of founder-CEO changes, and valuation metrics in fintech.
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18 Likes
TechCrunch
3w
433
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Startups Weekly: Fast and furious
- The startup ecosystem saw rapid developments this week with notable acquisitions and funding rounds.
- Wix acquired Israeli startup Base44 for $80 million, and Ramp's valuation jumped to $16 billion in just three months.
- Meta's deal to acquire 49% of Scale AI for $14.3 billion revealed new details, while OpenAI severed ties with Scale AI.
- The U.S. Department of Defense awarded a contract worth up to $200 million to OpenAI, potentially affecting its relationship with Microsoft.
- Applied Intuition secured a $600 million Series F, Helsing closed a €600 million investment, and Coralogix became a unicorn after a $115 million Series E.
- Mach Industries raised $100 million, Aspora closed a $50 million Series B, and Sword Health received $40 million funding, delaying its IPO plans.
- Multiplier Holdings raised $27.5 million, Grifin secured $11 million in a Series A round, and Polar raised $10 million in a seed round.
- Endeavor Catalyst aims to raise $300 million for its fifth fund to invest in fast-growing startups in emerging markets.
- Fintech investor Alexa von Tobel anticipates Fintech 3.0, emphasizing deep product reinvention to meet changing economic needs.
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26 Likes
Medium
3w
327
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Why Most Startups Waste Their First 6 Months (And How to Stop It)
- Many startups waste their first 6 months due to lacking real market demand and validation for their ideas.
- Startup success stories often omit the struggles of founders who spend months building products without market interest.
- The conventional method of building first and testing later is being replaced by testing first, then building.
- Founders often invest time and money into unvalidated ideas, leading to wasted resources and potential burnout.
- Startup validation should focus on reality over assumptions to avoid unnecessary failures.
- Tools like AAK integrate data to help founders determine if an idea is worth pursuing before development begins.
- Founders need access to better information rather than just inspiration to succeed in the startup world.
- It is crucial for founders to validate their ideas with data before committing to building to increase their chances of success.
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