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SaaStr 734: The Latest in Series A Rounds, AI Growth Rates and More with SaaStr CEO and Founder Jason Lemkin

Apr 5, 2024

SaaStr CEO and Founder Jason Lemkin delves into the latest trends in Series A rounds and AI growth rates. The podcast highlights the challenges of justifying unicorn valuations, the caution surrounding high growth expectations in AI investments, and fluctuations in SaaS buying behavior.

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INSIGHT

Market Dichotomy

The NASDAQ is at an all-time high, but many VC portfolios are down due to markdowns.
VCs must justify valuations to auditors, especially if no new rounds have been raised or revenue hasn't grown.

INSIGHT

Growth Drivers

The 2021 boost came from new IPOs and cloud leaders, but current growth is driven by established companies.
Big companies, like the "Magnificent Seven" and Nvidia, are leading the current market surge.

ADVICE

Fundraising Time

Plan for your A, B, or C round to be your last, as fundraising takes considerable time.
Fundraising can take 22+ months, so ensure you have sufficient capital.

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SaaStr 734: The Latest in Series A Rounds, AI Growth Rates and More with SaaStr CEO and Founder Jason Lemkin

So Redpoint Ventures published some of the slides they recently presented to their Limited Partners (their own investors) here.

There’s a ton of good data there, but this one slide stood out to me, because it was put together in a really clear fashion, better than other data sources I’ve seen.

And what it says is that even though Seed stage investing remains arguably as strong as ever … Series A hasn’t bounced back. Not at all.

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