Practical Venture Capital (PVC) is a venture capital firm that specializes in investing in technology companies, particularly in the software as a service (SaaS) sector. They have developed the PVC SaaS Index™, a proprietary index that tracks the valuation multiples of publicly traded SaaS companies.

Practical Venture Capital

Practical Venture Capital is a VC secondary firm providing liquidity to LPs and GPs.

PVC is pleased to co-host another installment of GeeksSFO this Thursday night in SF. You're welcome to join if you're in VC or other alts and will be in the Bay Area. Expect high-octane geeky networking, a couple of insightful talks, and a good time to be had by all! 

RSVP here: https://lnkd.in/gCwD4qeM

We're excited to return to chat with the SVIC podcast today. Thanks Jordan Thibodeau!

A new PVC SaaS Index™ Q1/24 update has dropped. Get ready to get saasified!

TLDR:
- Our PVC SaaS Index™ now trades at 7.1X EV / LTM revenue, up significantly from the 6.3X multiple observed at the end of Q4/22.
- Median SaaS multiples are still below their 5- and 10-year averages.
- Multiples for top-quartile companies have grown faster than the median.
- Mid-cap tech stocks are historically cheap, but US stocks in general are more expensive relative to bonds than at any time in the past decade.
- Trends suggest that macro headwinds affecting SaaS companies are receding, as cloud stocks posted a record quarter in Q4/23 for adding “Net New ARR.”

#vc #venturecapital #saas #startups #publicmarkets

how I think about VC portfolio models:
- # of companies
- size of check / ownership %
- survival / progression rates
- % reserve for follow-on
- whether to recycle early exits
- exit multiple expectations

Delighted to be interviewed by Shaun Beaney and Preqin about our investment approach at Practical Venture Capital where our "primary" focus is on secondaries.

#SkiptheJcurve

It’s very interesting to me that the 2/20 rule that dominates many financial industries comes initially from a guy (Arthur Rock) who decided it was the best way and then few have questioned it for 60+ years. 

Some are certainly doing it: Sweater, Practical Venture Capital by Dave McClure, AngelList & others are finding new ways to change the game. (Which other firms do you know that are betting on new ways?)

The origins: 

“And so we divided up the company. They each got 10 percent, which amounted to 80 percent, and Hayden Stone got 20. And that’s where the famous 80-20 began with. For all you venture capitalists, if there are any in the room, you can thank me for your 20 percent.” - Arthur Rock

That’s the origin of everything! Do you think the industry will shift quicker? Or will we stay rooted to the origin of the rule? 

PD I’m not saying the value delivered isn’t ENORMOUS to date, just encouraging conversation :) 

#vc #startups

PRAC

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Practical Venture Capital