Data-Driven VC: June Roundup
Where venture capital and data intersect. Every week.
👋 Hi, I’m Andre and welcome to my newsletter Data-driven VC which is all about becoming a better investor with data & AI. Every Tuesday, I publish “Insights” to digest the most relevant startup research & reports, and every Thursday, I publish “Essays” that cover hands-on insights about data-driven innovation & AI in VC. Follow along to understand how startup investing becomes more data-driven, why it matters, and what it means for you.
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Welcome to our monthly wrap-up episode where we cover June’s most relevant content at the intersection of VC, startups, data, AI & productivity.
We read it all so you don’t need to - here we go👇
INTERESTING RESEARCH & REPORTS📈
Understanding Valuation Multiples
Valuation multiples are crucial for determining a company's worth. They vary significantly based on growth stage, industry, and deal size. Understanding these dynamics is essential for entrepreneurs planning fundraising or exits. By aligning growth strategies with industry benchmarks, founders can attract the right investors and maximize valuations. Dealroom published a new guide to help you make data-driven decisions:
Public Valuation Multiples: Software companies' multiples are driven by growth and profitability, while marketplaces follow the Rule of 40 (revenue growth + margin > 40%).
VC Round Multiples: Early-stage investments carry higher multiples due to their potential for significant growth, with SaaS making up 41% of these rounds.
Exit Multiples: Larger deals often see higher multiples due to increased competition and perceived quality in the market.
✈️ KEY TAKEAWAYS
Strategic alignment helps set realistic expectations, make informed decisions, and effectively communicate value to stakeholders. As the landscape evolves, staying informed (with guides and data like Dealroom’s) on valuation trends ensures better preparedness for capital raising and scaling efforts.
Time Between Incorporation and Funding Rounds Keeps Growing
Peter Walker and his team at Carta ran the numbers on the time between incorporation and funding rounds. Here’s the details: