A conversation led by Jason M. Lemkin about investing in post-revenue SaaS companies. Lemkin recommends focusing on investing in winners rather than market multiples, prioritizing post-revenue startups where product-market fit is emerging (e.g., $20k–$40k in revenue and early customers), and acknowledging that growth paths can include rough years and shifting market conditions over long timeframes.
But I think so. I think the meta learning is just like get into winners and just, just don't worry about the stock market. Don't worry about multiples because you can't control it. And it's going to change so many times. Like it takes 10 years to get $1 billion exit like M&A IPO converts 10 years for. So the market's going to change a lot in 10 billion. Right? Don't, don't. You don't even need to look other than to understand follow on capital and burn rates. Just, just do. But I do think, I know people disagree. I do think if you're able to invest post revenue in SaaS you, you can, you know, you know it's going to be going to do reasonably well and you also know it's probably going to have a crap year in there.
I think me and you. Well, I don't know. I, I speak for myself here. I definitely have a sweet spot of. I like but post product 20 to 40k in revenue. You have some customers, you have some data. The founder's probably still leading the sales process.
But there's.
Something there. There's that seedling of goodness.
You know what the truth of that.
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