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.

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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