IPOs for tech companies with 20% growth are a healthy market sign
Jason Pressman · 20VC: Why It Is BS That You Never Regret Paying A High Price To Get Into A Good Company, Why There Are Only 2 Price Points That Work in SaaS and Why eSports Will Be Bigger Than Traditional Sports in 5 Years Time with Jason Pressman @ Shasta Ventures · Jul 19, 2017 · at 8:35
Jason Pressman, Managing Director at Shasta Ventures, responds to concerns about lower-growth enterprise software companies (like Yext) going public.
0:00 / 0:15exact quote · 15.1s
720p mp4 · rendered on demand · StarZero watermark
“There are really good companies that grow at twenty-ish percent a year, and the fact that they are able to get public actually doesn't alarm me. I actually view it as a really healthy sign that good companies that are growing at reasonable rates, but not some spectacular rates, have a liquidity opportunity in the IPO market.”
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 Jason Pressman
The VC adage that you never regret paying high prices is bullshit
“Some VCs say that you never regret paying a high price for getting into a good company, but I think that that is a bullshit. I think that you never regret paying a high price for an extraordinary company like Facebook, but there's only really one like that eve…”
SaaS startups with $10k to $100k annual contract values usually fail
“When you get caught in the middle, Somewhere between the 10 and a hundred K, you almost always end up on this slippery slope where your gross margins suck and you're upside down on your customer acquisition costs and the ultimate SAS model just doesn't work. A…”
Esports will draw a larger global audience than the NFL by 2022
“I do. Based on the underlying data today and how accessible it is to people, I do believe it will be larger, certainly, than the NFL.”
A robust IPO market inflates VC valuations and depresses overall returns
“There's just a good chance that With a robust public market, you'll see more dollars coming in to venture, and more dollars coming in means higher valuations at every round, and it just overall can drive returns down.”
Early-stage VCs reacting to current public IPO markets is stupid
“What's going on in the public markets today has absolutely no bearing whatsoever on what a liquidity market's going to look like when those companies are ready to either go public or be acquired. So I think it's really stupid, but it's quite commonplace”