SaaStr · 2012-10-08
· 4986d
The $100M Question: Determining If Your Startup Should Pursue Venture Capital
Jason Lemkin argues that entrepreneurs should only pursue venture capital if they genuinely believe they can build their company into a $100M+ business. He contends that venture capital is a niche product unsuitable for most startups, and founders without a credible path to significant scale should explore alternative funding sources like friends and family or bootstrapping.
Metrics in this report
Long-term VC Return Target
1,000,000,000$
implicit requirement
Venture capital funding expectations for IPO-path companies
Minimum Business Value for VC Suitability
100,000,000$
minimum target
SaaS companies seeking venture capital