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

Metric
Company Name	Practical Venture Capital
Symbol
MSH ID	COM:PRACTICALVC
Market	PRIVATE
Sector	Financial Services & Finance
Industry	Venture Capital
Country	US
Stage
Employee Count	9
Website	practicalvc.com
LinkedIn	practicalvc
Founders

Metric
Market Cap
Enterprise Value
Monthly Web Traffic
Web Traffic Growth
Valuation
Raised Capital

Metric
Revenue
Revenue (LTM)
Revenue (NTM)
Gross Profit
EBITDA
Operating Income
Net Income
EPS
Diluted EPS
Revenue 2022
Revenue 2023
Revenue 2024
Revenue 2025
Revenue 2026

Metric
Revenue Growth (LTM)
Revenue Growth (NTM)
Gross Profit Growth (LTM)
EBITDA Growth (LTM)
Net Income Growth (LTM)
14-Day Growth Score
28-Day Growth Score
90-Day Growth Score
365-Day Growth Score

Metric
Gross Profit Margin
Operating Profit Margin
EBITDA Margin
Net Profit Margin
Return on Equity
Return on Assets
Return on Capital Employed

PRAC

COM:PRACTICALVC

Practical Venture Capital

Company Overview

Market Metrics

Financial Performance

Growth Metrics

Profitability Ratios

Valuation Multiples

Operational Metrics

Cash Flow Metrics

Balance Sheet Metrics

Efficiency Metrics

Metric
P/E Ratio
P/B Ratio
Revenue Multiple (LTM)
Revenue Multiple (NTM)
EBITDA Multiple (LTM)
EBITDA Multiple (NTM)
Price to Sales Ratio
EV Multiple

Metric
Days Sales Outstanding
Days Payables Outstanding
Days Inventory Outstanding
Operating Cycle
Cash Conversion Cycle
Asset Turnover

Metric
Operating Cash Flow
Free Cash Flow
Cash Flow to Debt
Operating Cash Flow/Sales
Free Cash Flow Yield

Metric
Cash & Equivalents
Accounts Receivable
Inventory
Goodwill
Debt to Capitalization
Debt to Assets
Current Ratio
Quick Ratio

Metric
Rule of 40 (LTM)
Rule of 40 (NTM)
Stock Comp to Revenue
R&D to Revenue
SG&A to Revenue