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Deven Parekh: Multiple Insight portfolio companies hold $300M to $500M in cash

Deven Parekh · Roundtable #4 with Jason Lemkin, Woody Marshall, Deven Parekh, Harry Stebbings | E1071 · 20VC with Harry Stebbings · Oct 11, 2023 · at 9:05

Deven Parekh, Managing Director at Insight Partners, explains why many growth companies are avoiding new funding rounds after capitalizing on low capital costs during 2021.

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“We have multiple companies in our portfolio that have between three and five hundred million dollars of cash on their balance sheet.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Deven Parekh

Prediction Not checkable as stated
Deven Parekh predicts venture-backed startups will significantly reduce employee option strike prices
“I think there's going to be a lot of those cases where companies with our support, you know, we're going to significantly reduce the valuation of the option and equity incentives going forward.”
Deven Parekh Oct 11, 2023 ▶ 10:17 Roundtable #4 with Jason Lemkin, Woody Marshall, Deven Parekh, Harry Stebbings | E1071 · 20VC with Harry Stebbings
Prediction Didn’t hold up
Deven Parekh predicts the tech IPO market will reopen in H2 2024
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Deven Parekh Oct 11, 2023 ▶ 32:03 Roundtable #4 with Jason Lemkin, Woody Marshall, Deven Parekh, Harry Stebbings | E1071 · 20VC with Harry Stebbings
Assertion Supported
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Deven Parekh Oct 11, 2023 ▶ 42:52 Roundtable #4 with Jason Lemkin, Woody Marshall, Deven Parekh, Harry Stebbings | E1071 · 20VC with Harry Stebbings
Opinion
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“Look, we think right now in 23, the valuation, we're in a hype cycle. The valuations are way ahead of Where companies are, and you're seeing companies who've raised money as recently as six or nine months ago who are already being impacted by something develop…”
Deven Parekh Oct 11, 2023 ▶ 48:02 Roundtable #4 with Jason Lemkin, Woody Marshall, Deven Parekh, Harry Stebbings | E1071 · 20VC with Harry Stebbings
Insight
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“We have a line that we use internally is that we never overpay. Companies miss their numbers. What it really is saying, if we're right on our growth underwriting, price is not really the problem, because it's amazing the power of compounding.”
Deven Parekh May 17, 2021 ▶ 8:24 20VC: Insight Managing Director, Deven Parekh on The Current Funding Mania, Compression of Round Timelines, Fund Deployment Speeds Increasing & How To Think Through Price and Time Allocation Across the Portfolio
Prediction Not checkable as stated
Deven Parekh predicts rushed venture deal timelines will cause negative outcomes
“I think the bigger challenge today, to be honest with you, Harry, is less around price. It's more on how quickly decisions are having to get made, and I think that, I think, might have, you know, negative implications, not just for investors, but also for foun…”
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