How To Start A SAAS

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                                          Successful Venture Capital Funding
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                                         If you want to launch a venture capital fund, don't think you have to invest in a crazy company. You can start as a very small local business and grow gradually! There are countless ways to invest and set up your fund. Let's talk about what it is, the relationship you need, and how it works. This is sometimes confused with or referred to as "angel investing." The real difference between the two is that venture capital uses other people's money, whereas angel investing uses its own money. Venture capital is the raising of funds to invest in early-stage companies, also known as seed companies. If you come across a venture team, its founder is usually one of these two internal employees:
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                                            1. Experienced Investor
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                                         He has been in the industry for a long time and has invested in companies before.
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                                           2. A Successful Entrepreneur
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                                         This is probably someone who built a business, sold it to make a lot of money, and is looking to invest in other small businesses.
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                                         And are you one of those individuals? Either way, that's fine, and you'll also benefit from venture capital funds. If you are not one of these people, you have a few options: either be one or work with someone who is.
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                                          What is Venture Capital
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                                          Venture capital is money invested in small tech startups. Venture capitalists are experts at picking winners and know how to provide entrepreneurs with the funding they need to get their businesses off the ground. Have you ever wondered why some companies take years to grow while others reach unicorn status ($1 billion worth) in just a year or two? Nine times out of ten, Venture Capital (VC) funds are the engine of rapid growth and success for small businesses. Venture capital may seem obvious today, but it wasn't always so. It's a fairly new phenomenon, gaining momentum exponentially in recent decades.
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                                           Venture Capital – A History
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                                          The first signs of venture capital and private equity appeared shortly after the end of World War II. When interest rates fell to an all-time low of 4% (and are now even lower!), small businesses across the country (USA) began to boom. These small businesses needed cash. And to beat our competitors, we needed a quick response. The bank made the loan, but the underwriting process took too long. These entrepreneurs also did not have a qualifying credit history. American Research and Development Corporation and J.H. Whitney Company stepped in to meet that need. They fund startups and receive equity (property) instead of charging interest like a loan. Some companies have very solid business models that make sense. "Bet $1 and return $2." But most early-stage companies don't have enough cash to grow quickly and stay competitive.
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                                         There are hundreds of different niches in venture capital today. Each fund typically has its investment theme. I usually choose the following categories:
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                                             a) Fin tech or
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                                             b) Healthcare or else
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                                             c) Agriculture
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                                          But not always. In some cases, we also invest in certain stages of the business.
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                                            <li>Seed investment or Series A</li>
                                            <li>Series B or C funding</li>
                                            <li>Series D or E (late-stage venture)</li>
                                            
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                                            The Process
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                                         Typically, to launch a venture fund, a few people get together to write an investment thesis. They set up general and limited partnerships and raised money from investors. They receive the investor's money and invest it according to their investment thesis. Venture capital is considered an alternative investment. Large investors often allocate portions of their portfolios to alternative asset classes. This is because they are known to offer better returns than boring, diversified portfolios of stocks and bonds. The problem with alternative investments is that they are exposed to much higher losses. A common trend is for venture capitalists to raise $100 million to invest in about 30 companies over the next few years. Twenty of these companies will probably cease to exist within a few years. Five threads barely dribble. Three of them are currently being rebalanced. But it's still a bad investment.
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                                          However, one or two of these companies earn 100 times their revenue and pay well. Have you heard of the 80/20 rule? Where does the top 20% produce 80% of the results? Well, in VC, it's closer to the 98/2 rule. The top 2% produce 98% of the results. Another risk with Venture is its long lockup period. This means that once you deposit money, you won't be able to access it for 5 to 12 years. But the ridiculously high returns are worth it. Venture capitalists are often founding partners. After they invest in a company, they either join the board or act as advisors and mentors. If a company has an exit strategy, it could mean that it plans to sell itself or be acquired by another company to make a profit.
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                                         Getting into the game is a risky move, but it's the payouts that keep people in the game.
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                                           Note:
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                                         Certain requirements and thresholds must be met before investing in a venture.
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                                         Becoming an entrepreneur, building a business, and selling it for a huge profit sound amazing, but not everyone is good at it. So, if you change your mindset, you will become an experienced investor. The first step is to get an MBA from Harvard. Next is a joke. If I've taught you anything, it's that you don't have to be fancy to get started. For example, Harlem Capital started with $25,000. They each pocketed $5,000 of their own money, because that was what they were all about. If you start now, you will be ahead of 95% of the field. Get your first offer now! My first fund was $49,000, but that's more than most other people have done. Because I started!
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                                         There was someone on my friend list who started right out of college. They approached older people in their 50s and said, "You may not know the difference between Zoom, FaceTime, and Google Meet, but I do!" That’s it; find out what your era makes use of and likes. Find out what you're good at, and then look for small businesses to invest in that niche. So, start thinking about it. Relationships and team dynamics are very important to the fund. So, stick with what you know and leverage the skills of others to grow.
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                                         Unlike private equity, which is very active and accomplishes a lot, venture capital is very passive. In most cases, they simply buy shares in companies and offer their expertise. If the company you're investing in is a good one, you're not the only VC firm interested in investing in it. That's why I want to show that these companies are good partners to work with. Build rapport and build your resume. Let's get started again.
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                                         Of course, there's a lot more to do, but any business just needs to get started. We want to be able to build trust in ourselves and others. You can't learn everything before you start; you learn along the way. Trust me, I am always learning.
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How To Start A SAAS

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Chapter-2

Chapter-3

Chapter-4

Chapter-5

Chapter-6

Chapter-7

Chapter-8

Chapter-1

Chapter-2

Chapter-3

Chapter-4

Chapter-5

Dan Lesniak

Cody Davis

Samuel Zell