Mark Suster: Getting funded in a frothy market

The presentation below was given by US VC blogger Mark Suster at the Founder Showcase conference in San Francisco yesterday. It’s a cracker – 70 slices, but quick to flip through.

My favourite bit is his discussion of ‘lean vs fat’ i.e. how aggressively you should ramp your cost based and go for growth (slies 31-34). The answer: stay lean until you REALLY know you’re onto something big. Emphasis mine.

Slide 62 is also interesting. It shows the decline in the number of active VCs, down from 2,316 at the peak of the bubble to 750 last year, which is 15% less than the 880 VCs that were active in 1998.

VC Funding in a Frothy Market

  • The other keynote by Naval Ravikant of Angel List was also illuminating: The part I thought was the most interesting was his comments on how the market is bifurcated. A few startups get money thrown at them, but for the most part fundraising is still quite challenging! I think all the bubble talk can give people the wrong expectations.

    How much of a frothy market do you see in London these days? I would think it’s less volatile than the US, although maybe not much.