SaaS burns multiples, 8 fintech VCs spill the tea, all my monkeys are gone –


Despite the ongoing correction in public markets, massive layoffs in the technology sector and high inflation, US Treasury Secretary Janet Yellen says we are not in a recession yet.

At the same time, it is taking much longer to secure startup financing than it was a few months ago, meaning many companies are burning money faster than they can raise it.

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For SaaS startups, firing staff and going completely remote isn’t enough: To add more time to the countdown, founders need to calculate their burn multiple (net burn/net new ARR), said Alex Zekoff, CEO and co-author -founder of Thoughtful automation:

The gold standard is a burn multiple of one – for every dollar you burn, you add a net new dollar in subscription revenue. At less than zero, you are in a cash flow positive position, which is really hard to do. But suppose you burn $2 million in a quarter, and you add only $500,000 in net new ARR. You’ve burned a multiple of 4x and you should probably start thinking about how to reduce that.

Thank you very much for reading, and have a nice weekend.

Walter Thompson
Editorial Manager,


The Right Questions to Ask Investors When Fundraising in a Down Market

Image of a yellow question mark glowing between black question marks on a black background.

Image Credits: MicroStockHub (Opens in a new window) / Getty Images

Fundraising chats still start with a chat, but startup teams are under more pressure than ever to make the most of these rare opportunities.

Blair Silverberg, CEO and co-founder of Hum Capital, says entrepreneurs should resist the urge to get defensive during these sessions.

“In fact, the more a founder can steer the questions back to the investor in a way that gives a better understanding of their business and investment strategy, the easier the rest of the conversation will be.”

All My Monkeys Gone: Legal Disputes at the Intersection of IP and NFTs

Missing bored monkey illustration;  IP law and NFTs

Image Credits: Bryce Durbin /

When Andy Warhol appropriated images of Campbell’s soup cans in 1962, he was lucky: for a variety of reasons, the company decided not to sue him for trademark infringement.

One wonders how the situation would have turned out 60 years later if Warhol had hit a string of NFTs with the iconic labels.

In her latest TC+ post, CORPlaw founder Kristen Corpion explored “the most interesting and important intellectual property legal issues currently affecting the creation, transfer and use of NFTs,” including trademark infringement, the first sales doctrine and why Seth Green ended up paying a $100,000 bounty to buy back his stolen Bored Ape.

Fundraising in Turbulent Markets: Why We Rise in our Series B

Catching dollar bills with a net;  fundraising in turbulent market

Image Credits: PM images (Opens in a new window) / Getty Images

OpenPhone successfully raised a $14 million Series A in November 2020, but when co-founder and CEO Mahyar Raissi realized they needed another round a year later, “it became clear the market was spinning. “

In classic TC+ “how to” style, Raissi, a former software engineer, explains the process his team used to accelerate their Series B, the tactics they used to manage investors, and how the strategy led to a round of $40 million.

“For a timely trial, you need to be armed with a complete and bulletproof case to invest in your business. You should spend a few weeks preparing your data and the story behind it before talking to VCs,” Raissi advises.

“There is no time to test the waters and get early feedback. Do all that before you start the countdown.”

Pitch Deck Teardown: Alto Pharmacy’s $200M Series E-deck

If your company raises a $200 million Series E, it’s reasonable to debate whether you can still call it a startup.

Still, convincing investors to part with enough money to produce your own sequel to “The Gray Man” is an impressive feat, which is why we were eager to check out the deck that helped Alto Pharmacy close such a big round. .

8 fintech VCs discuss the changing investment landscape and how to pitch them in Q3 2022

Empty road winding over moor.

Image Credits: James Osmond / Getty Images

What are fintech investors willing to bet on in this climate?

To get a sense of how their stances and strategy have changed in recent months, Mary Ann Azevedo asked eight active investors about the advice they give portfolio companies, how they expect the coming quarters and their pitch preferences:

  • Paul Stamas, managing partner and co-head of financial services, General Atlantic
  • Alda Leu Dennis, General Partner, Initialized Capital
  • Michael Gilroy, General Partner and Co-Head of Fintech, Coatue
  • Justin Overdorff, partner, Lightspeed Venture Partners
  • Addie Lerner, Founder and Managing Partner, Avid Ventures
  • David Jegen, Managing Partner, F-Prime Capital
  • Nik Milanovic, General Partner, the Fintech Fund
  • Jay Ganatra, Co-Founder and Managing Partner, Infinity Ventures


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