Point Nine Land
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Point Nine Land

What does it take to raise capital, in SaaS, in 2022?

We’re excited to share the new version of the SaaS Funding Napkin.

  • The analysis is based on a total of 95 funding rounds that took place from January to July 2022, including 13 follow-on rounds in P9 companies, five new investments by ourselves, and 77 financings in companies outside of our portfolio. The data for companies outside of our portfolio mostly comes from investors in these companies. Many thanks to everyone who contributed to the survey!
  • Ninety-five funding rounds are not a huge dataset. We believe the data is directionally correct, but please keep in mind that our sample may not represent the market as a whole.
  • This caveat is even more important when we slice and dice the data to look at, for example, the valuations of Series B rounds from May to July. For some of these segments, we only have a couple of data points, so you’ll need to take these analyses with an extra big grain of salt.
  • The breakdown by stage is done based on the round labels we got from participants, but the lines can be blurry since there’s no universally accepted definition of what e.g. a seed round is compared to a pre-seed round.
  • The question we try to answer with the napkin has always been, “What does it take to raise capital in SaaS, currently”. In choosing the headline numbers that we’ve put on the napkin, we therefore decided to give more weight to the numbers from May until July. That means the numbers are heavily influenced by a smaller number of data points, but if you take a look at how the market has changed from April to May, I think you’ll agree that the January-April numbers are likely to be misleading for anyone trying to raise capital in the next few months. However, we’re also publishing the full data so you can look at the raw data and draw your own conclusions.
  • We didn’t ask all of the original napkin survey questions regarding team, market, product, etc. in this year’s survey. Our notes in these sections are based on survey answers from the last years, our own experience, feedback from other investors, and the answers to the “What’s become more important in 2022?” question that we asked this time.

SaaS Funding Napkin 2022

(larger version)

Digging in deeper

(1) Round sizes, valuations, ARR levels

If you’re wondering why the columns for the Series C rounds are thicker: there are fewer of them, so there’s more space for each one. That’s all. :)

(2) Growth

(3) What matters in 2022?

Observations

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Christoph Janz

Internet entrepreneur turned angel investor turned micro VC. Managing Partner at http://t.co/5WJ3Pepbcv.