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Startups For the Rest of Us

Episode 748 | The Ins and Outs of Startup Investing

Jan 14, 2025
Einar Vollset, co-founder of TinySeed and an expert in SaaS investing, shares insights on startup investing strategies. He discusses the waning stigma around bootstrap funding and redefines success beyond billion-dollar exits. The conversation delves into deal flow dynamics, the tricky nature of valuations, and the importance of keeping optionality in investments. Einar highlights TinySeed's unique focus on capital efficiency in supporting ambitious B2B SaaS companies, contrasting it with traditional VC models.
38:43

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Understanding the dynamics of startup investing reveals that diversifying through a fund like TinySeed reduces risk compared to individual startup investments.
  • TinySeed's focus on realistic exit strategies challenges the conventional valuation obsession in venture capital, aiming for sustainable success in B2B SaaS companies.

Deep dives

Understanding Startup Investing

The discussion focuses on the intricacies of startup and venture investing, highlighting key aspects that differentiate TinySeed from traditional venture funds. One major point emphasized is the rationale behind investing in a fund versus individual startups; investing in a fund generally minimizes risk by diversifying across multiple companies. Additionally, the conversation reveals that while many individuals believe venture investing yields extremely high returns, the statistics show that a significant portion of venture funds do not outperform traditional index funds. The importance of understanding these dynamics is essential for founders and investors alike, ensuring they make informed decisions about funding their startups.

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