SaaStr · 2015-07-03 · 3988d

8 Critical Mistakes in Early-Stage VC Investing: A Partner's 18-Month Retrospective

Jason Lemkin shares eight key mistakes made during his first 18 months as an institutional VC partner, focusing on decision-making in early-stage SaaS investing. The article emphasizes the importance of decisiveness with great founders, maximizing investment amounts, maintaining focus on core competencies, and avoiding unnecessary negotiation friction. These lessons are grounded in his experience managing paper returns and building a portfolio across companies like Talkdesk, Algolia, and Avanoo.

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Metrics in this report

Decision Timeline on Great Founders

20minutes

typical

for conviction-level investment decisions

Founder Meetings Per Week

10 to 1meetings/week

before and after optimization

early-stage VC partner practice

Minimum Ownership Stake Sought

>10%%

per VC investor

early-stage SaaS rounds

Portfolio Concentration

8 out of 10ratio

typical

single-handed deals (one VC per round)

SaaS Gross Margin Threshold

75+%

minimum

for non-pure SaaS investments considered in portfolio

Two-Handed Deal Success Rate

rarequalitative

n/a

Series A+ rounds in current market