Peter Specht
Partner, Creandum · 0 appearances on the record.
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11 assertions · 7 insights · every statement was checked. The predictions and assertions are the 11 claims: statements the public record can support or contradict. 1 is resolved, and 10 name no date, number or outcome precise enough to check. Everything else (opinions, insights, what ifs, disclosures) can never be settled by the record, so it carries no assessment.
Everything Peter Specht said on the Official SaaStr Podcast that made the record, most notable first. Filter by type, assessment or year in the ledger →
Specht: Outlier AI deals can still raise at 100x ARR
“And then selective AI deals, the outliers, Still, still play on 20, 21 levels. Typically if they show very high growth, and they race then on a, can race on something like a hundred XAR if it's like a very, you know, sought after and competitive process.”
Specht: Top Series A rounds require $2.5M to $4M ARR
“And if we look at the rounds that have happened here, that being done by very good funds, is, You know, between two and a half million AR and four million AR.”
Specht: Most completed 2023 VC rounds required 3x to 5x growth
“So when talking to investors about these rounds that happened and what we saw in the market, actually most of the rounds that happened have been more towards three to five X in growth.”
Specht: Minimum growth benchmarks are 2.5x for Series A, 2x for B
“So right now it's series A. It starts between like two and a half to three X as the minimum growth expectation. And then at series B, it starts at two to two and a half X as the minimum growth expectation.”
Specht: Over 90% of VCs expect Series B burn multiples under 2x
“Where 40% of the people expect a burn multiple between one and one and a half, which is considered to be a great burn multiple. And, 53% want to see one and a half to two X burn multiple. So, 90% of the people, of the funds, want to see burn multiples, ideally…”
Specht: Startup Valuations Have Returned to 2020 Baseline Levels
“But the interesting aspect actually is, when looking at this chart, as valuations actually have just gotten back to the levels they were in, in 2020.”
Specht: All recent outlier high-valuation funding rounds are AI rounds
“All the outlier rounds that raced on very high valuation have been AI rounds.”
Specht: Series B rounds now require at least $5M ARR
“B rounds start at five million ARR with a tendency towards more.”
Specht: 70% of VCs consider 20x to 30x healthy Series A multiples
“And here the answer is between Series A it's roughly 20 to 30 X.
So, 70% of the people fall into that range.
The bucket, actually, with the largest, you know, share of answers, 40%, is 25 to 30 X.”
Specht: Most VCs view 15x to 20x as healthy Series B multiples
“Ah, this is series B, and here we assume six million ARR for a series B.
And there the picture is slightly more concentrated, where most of the people think that 15 to 20 X is a healthy multiple, you know, for that stage.”
Specht: 2x to 3x Growth Results in 15x Valuation Multiples
“In the lower multiple buckets, like, in the, let's say, in a range of, like, 15 to 25, you would rather end up at the 15 X multiple range if you are growing, let's say, two to three X. So, solid good growth, but not hyper growth, not, like, very fast growth. T…”
Specht: ARR Multiple Benchmarks Only Work Above $1.5M-$2M ARR
“Typically, I think the multiple comparisons work well from, like, one and a half million, two million ARR upwards. When the base is, you know, much lower than that, then multiples are simply just very high because the denominator is so small in the calculation…”
Specht: Limit investor pitch calls to a maximum of five per day
“I also always recommend to maximum have five investor calls per day and not go for like 15, because you sometimes realize that people are, you know, worn out at the end of the day. You don't have the right energy of it. So rather, you know, ah, focus your ener…”
Specht: Founders must ignore early VC praise because only term sheets count
“And the most important point here is don't get blinded by initial off. Only a term sheet counts. What do I mean with that? It's the job of a VC to shine, you know, to show you initial love.”
Specht: Founders should raise 24 to 30 months of runway
“Typically I said, like, raise money for 24 months of runway, now, or 20 to 24 months of runway, now I would say actually 24 to 30 months of runway, ideally to more towards 30 months of runway, given the uncertain market,”
Specht: Startups must start fundraising nine months before cash out
“It's not starting six months before cash out anymore. It's more starting, you know, nine months before you run out of cash, because after two, three months, you realize if the fundraise was probably successful or not. And if it's, you know, tough fundraise or …”
Specht: Founders should prioritize closing rounds over high valuations
“And then, flat and down rounds are happening. We're seeing them across in the market. Everyone wants to avoid them. No one likes them. But they're the reality. And I would suggest prioritizing making a round happen over pushing on valuation.”
Played on the show (1)
Episodes where a recording of Peter Specht was played rather than Peter taking part, or where the tape carries an address with nobody putting questions to them. Listed because the words are on the record, kept out of every score on this page because they were not said on this show. We read this off the tape: who was spoken to, who was asked something, who answered whom.
| Episode | Date | On tape | What it is |
|---|---|---|---|
| Raising Capital in 2023: What You Really Need To Know with Creandum Partner Peter Specht | Jul 27, 2023 | 20m | aired address |