Why do you believe venture capital in software has shifted toward billion-dollar positions or nothing?
Replied byJason Lemkin
Founder & CEO at SaaStr
Niche: SaaS
Revenue: Approx. USD 2.5 Million/month
Location: Palo Alto, California, United States
Started: 2012
Top-tier venture firms have accumulated tens of billions in assets under management, meaning writing three-hundred-thousand-dollar seed checks cannot move the needle on their fund returns. Large firms are forced to concentrate massive capital into consensus breakout winners, creating intense competition for late-stage allocation while early-stage founders face a fragmented funding landscape.
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