Navigate Ventures

“When people came to me for growth capital, they were all too early. They wanted to raise $30 million to $60 million and needed another six or nine months before they were ready to raise it. It became such a common problem I started to look into it. And then we learned that over 65 percent of companies that raise seed and Series A fail post-Series A.”

“The average time for pre-seed to seed, or seed to Series A rounds, is about 20 months, while Series A to growth is 33 months, so they just run out of cash. So we proactively identify the best enterprise SaaS companies outside of Silicon Valley with at least $2 million to $3 million in ARR, we talk with the investors and say, 'Well, this one has nine months of runway; why don't we make it 18 months?'”

“Secondaries are going to become a lot more important. Most people think that secondaries are when you go and buy at one of these auction places and don't understand what it is. I think because liquidity is such an issue, you need to create more optionality for liquidity, and secondaries are here to stay and grow because it's another option, not only for the LPs but for the GPs as well.”