This document discusses secrets to raising a Series C round of venture capital funding. It is a presentation by Jules Maltz of IVP. The presentation covers the importance of having a strong market position, strong management team, demonstrating growth through metrics, raising funding before it is urgently needed, considering different options, and knowing that valuation/price is not the primary concern for investors in a later stage round. IVP is described as a later stage investor focusing on fast growing companies with over $10M in revenue.

1. JULES MALTZ
GENERAL PARTNER / IVP
#saastrannual
Series C Secrets: What it Really
Takes to Raise a Later-Stage VC
Round

2. Series C Secrets
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ABOUT IVP
• Current Fund: IVP XV, a $1.4 billion later-stage
fund
• Investment Focus: Fast-growing companies with
over $10 million in revenue run-rate
• Portfolio: 300+ companies, 103 of which have
gone public
• Sectors: Tech and media….and over 25 in SaaS

3. Series C Secrets
ABOUT IVP
• Current Fund: IVP XV, a $1.4 billion later-
stage fund
• Investment Focus: Fast-growing companies
with over $10 million in revenue run-rate
• Portfolio: 300+ companies, 103 of which have
gone public
• Sectors: Tech and media….and over 25 in
SaaS

4. Series C Secrets
#saastrannual
HIGH SCHOOL
W H A T W A S T H E # 1 S O N G I N 1 9 9 7 ?

5. Series C Secrets
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6. Series C Secrets
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THE SECRET TO RAISING A
SERIES C… THAT YOU WON’T
FORGETM
M
M
B
O
P

7. Series C Secrets
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THE SECRET TO RAISING A
SERIES C… THAT YOU WON’T
FORGETMarket
Management
Metrics
Before you need it
Options
Price is last

8. Series C Secrets
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MARKET &
MANAGEMENT

9. Series C Secrets
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1) MARKET -
TWO OPTIONS
Leader in a Small Market (That Will Be Big) You’re Different in a Big Market

10. Series C Secrets
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2)
MANAGEMENT

11. Series C Secrets
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3) METRICS - HOW FAST
SHOULD YOU BE
GROWING?
“START WITH $2M… THEN TRIPLE TRIPLE DOUBLE DOUBLE DOUBLE.”
NEERAJ AGARWAL, BATTERY VENTURES

12. Series C Secrets
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3) METRICS -
EFFICIENCY &
RETENTIONMagic Number
(Gross Profit)1
Good
0.7x
(17 month payback)
40%
75% (SMB)
85% (ENT)
120%
Great
1.5x
(8 month payback)
80%
82% (SMB)
95% (ENT)
140%
Rev Growth +
Cash Flow2
Gross Retention
(Annual)
Net Retention
(Annual)
1)((CQ Gross Profit – LQ Gross Profit) * 4) / LQ S&M
2)“Rule of 40” by Brad Feld at Foundry Group). Works best for revenue run-rate between $25-50M. Should be higher if revenue is lower and lower if re

13. Series C Secrets
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3) METRICS - GROWTH
VS. RETENTION
High
Growth
Sell Fast Raise $$$ and Grow
Low
Growth
Fix or Shut Down
Lifestyle Business or
Private Equity
Low Retention High Retention

14. Series C Secrets
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NOW IT’S TIME
TO BOP

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4) BEFORE YOU
NEED IT

16. Series C Secrets
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5) OPTIONS

17. Series C Secrets
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6) PRICE IS
LAST

18. Series C Secrets
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IT’S TIME TO GROW UP
BUT DON’T FORGET…
Market
Management
Metrics
Before you need it
Options
Price is last

19. Series C Secrets