The Official SaaStr Podcast: SaaS | Founders | Investors

SaaStr 824: VC in the AI Era - Exactly What's Getting Funded, Why & When with SaaStr CEO and Founder Jason Lemkin

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Oct 8, 2025

Explore the current venture capital landscape where AI-native companies are reshaping funding dynamics. Discover the crucial metrics and benchmarks investors expect from SaaS and AI startups, including how to stand out in a crowded market. Learn about the new SaaStr AI tools that help founders assess their funding prospects through pitch deck reviews and real-time valuations. Jason Lemkin offers practical advice on securing investments and navigating the high stakes of funding in today's tech world.

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INSIGHT

Capital Chasing Hypergrowth AI Winners

Venture funding is concentrating on hypergrowth AI-native companies that can reach massive ARR in months or a few years.
VCs are shifting capital left on the growth curve to chase those extreme winners rather than slower classical SaaS trajectories.

INSIGHT

Two Distinct VC Buckets Today

VCs now classify investable startups into two clear buckets: high-margin classic SaaS 'shooting stars' and low-margin AI 'supernovas'.
Each bucket has very different financial profiles but both attract large amounts of capital if growth is extreme.

INSIGHT

AI Scale Brings Headcount Efficiency

AI-native scale can yield much higher ARR per employee despite lower gross margins and heavy cash burn.
Headcount efficiency becomes a competitive advantage for fast-growing AI companies.

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SaaStr 824: VC in the AI Era - Exactly What's Getting Funded, Why & When with SaaStr CEO and Founder Jason Lemkin

In this episode, SaaStr CEO and Founder Jason Lemkin delves into the current state of venture capital (VC) funding, informed by data from over a thousand reviewed pitch decks and approximately 400,000 startup valuations on SaaStr AI. Learn about the latest trends, what VCs are looking for, and what it takes to secure funding in today's market. We'll discuss the performance metrics and benchmarks necessary for SaaS and AI startups and how AI-native companies are reshaping investment dynamics. Discover SaaStr AI's new tools, including pitch deck reviews and real-time valuation benchmarks, to help you understand where your startup stands and improve your funding prospects. 00:00 Introduction and Overview 00:41 VC Funding Trends and Insights 02:11 Top Quartile SaaS Benchmarks 03:14 AI Native Companies and Hypergrowth 08:00 Public vs. Private Company Growth Expectations 10:22 VC Funding Criteria and Expectations 15:35 SaaStr AI Tools and Resources 20:15 Practical Advice for Founders 26:26 Conclusion and Final Thoughts

--------------------- This episode of the SaaStr podcast is Sponsored by Salesforce:

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This episode of the SaaStr podcast is Sponsored by Intercom:

Fin is the #1 AI Agent for resolving complex queries like refunds, transaction disputes, and technical troubleshooting—all with speed and reliability. See how Fin can deliver the highest resolution rates and highest-quality customer experience at fin.ai/saastr. --------------------- If you're serious about B2B and AI, you need to be in London this December. SaaStr AI London is bringing together more than 2,000 leaders and founders for two days of practical advice on scaling into the new year. We'll have speakers flying in from OpenAI, Wiz, Clay, Intercom, and all your favorite SaaS companies, including yours truly with Harry Stebbings for a live 20VC podcast. It'll be fun, and it's all in the heart of London. Don't miss out: get your tickets with my exclusive discount by going to podcast.saastrlondon.com --------------------- Hey everybody, the biggest B2B + AI event of the year will be back - SaaStr AI in the SF Bay Area, aka the SaaStr Annual, will be back in May 2026. With 68% VP-level and above, 36% CEOs and founders and a growing 25% AI-first professional, this is the very best of the best S-tier attendees and decision makers that come to SaaStr each year. But here's the reality, folks: the longer you wait, the higher ticket prices can get. Early bird tickets are available now, but once they're gone, you'll pay hundreds more so don't wait. Lock in your spot today by going to podcast.saastrannual.com to get my exclusive discount SaaStr AI SF 2026. We'll see you there.