Roundtable #4 with Jason Lemkin, Woody Marshall, Deven Parekh, Harry Stebbings | E1071

ℹ️ EPISODE INFO

Released

October 11, 2023

Duration

54m

Channel

The Twenty Minute VC

Watch on YouTube

▶ Open ↗

📝 EPISODE DESCRIPTION

Every single 20VC episode is recorded with Riverside.FM. It is the one product that I could not live without. Try it today here (https://creators.riverside.fm/20VC) and use the code 20VC for 15% off. ----------------------------------------------- Deven Parekh is a Managing Director at Insight Partners, one of the leading investing franchises of the last 25 years. Deven has made more than 90 investments since joining in 2000 including in the likes of Twitter, Alibaba, JD.com, Chargebee and Automattic (WordPress) to name a few. Woody Marshall is a General Partner @ TCV, one of the most successful growth funds of the last decade with a portfolio including the likes of Facebook, AirBnB, Spotify, LinkedIn and many more incredible companies. Jason Lemkin is the Founder @ SaaStr one of the best-performing early-stage venture funds focused on SaaS. In the past, Jason has led investments in Algolia, Pipedrive, Salesloft, TalkDesk, and RevenueCat to name a few. ----------------------------------------------- Timestamps: (0:00) Intro (3:00) Is Growth Dead? (18:22) The Reset of Valuations (29:37) The Broken Nature of SaaS Investing (31:34) When will the IPO market rebound? (35:10) The Klaviyo IPO (46:12) Frothy AI Deals (48:35) Jason Needs Advice Valuating His Growth Investment (50:42) VCs Predict Klaviyo’s Stock Price --------------------------------------------- In Today’s Episode We Discuss:

1. The Growth Landscape Overview: Is growth dead? Are any growth deals getting done? How has the price changed for growth deals that are getting done? Which type of growth companies will vs will not be able to raise? What happens to all of the growth companies with $300-$500M in cash but little revenue?

1. The Great Reset: Valuations Need to Change: Why should companies be actively resetting their valuations? What are the benefits? What will happen between VCs and LPs when there is no incentive for VCs to reset their portfolio valuations when they need to go out and raise from those same LPs? Structure is often part of these valuation resets, is structure to rounds always bad? When is it good? What type of structure is acceptable vs unacceptable?

1. Are the Public Markets Creeping Open: Should we take comfort from ARM, Instacart and Klaviyo and assume the public markets are going to open again? If not, what will cause them to open? How should we analyze the performance of the IPOs above? Many have been negative, are they right to suggest this is not the response we wanted? Why does Woody believe, like Instacart taking a 75% discount to their last round, we should have more and more companies go public at discounts to their last private round?

1. Late Stage Growth is Dead and Revenue Multiples: Why is late-stage growth dead? How long do we think this will last? How should we assess revenue multiples today? New normal? Same as always? How will revenue multiples look in 12 months from now? How should we analyse the large late stage growth rounds for hyped AI companies? What happens there? --------------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow Jason Lemkin on Twitter: https://twitter.com/jasonlk Follow Deven Parekh on Twitter: https://twitter.com/djparekh Follow Woody Marshall on LinkedIn: https://www.linkedin.com/in/woodymarshall/ Follow 20VC on Instagram: https://www.instagram.com/20vc_reels Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/contact ------------------------------------------- #VentureCapital #JasonLemkin, #WoodyMarshall, #DevenParekh #HarryStebbings

🎤 SPEAKERS

• Deven Parekh

  guest

• Harry Stebbings

  host

• Woody Marshall

  guest

• Jason Lemkin

  guest

🧾 EPISODE SUMMARY

In this episode of The Twenty Minute VC, featuring Deven Parekh and Harry Stebbings, Roundtable #4 with Jason Lemkin, Woody Marshall, Deven Parekh, Harry Stebbings | E1071 explores top VCs Debate Growth, Valuations, IPOs, and the AI Hype Cycle Growth investing is far from dead: underlying company performance remains strong, but deal volume is down sharply as investors and founders work through a valuation reset from 2021 highs.

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