Quick Notes from Marc Andreessen’s AMA

Stripe has an excellent post up titled Marc Andreessen answers questions from Stripe Atlas founders. Andreesseen, as always, doesn’t disappoint (see the article about him in The New Yorker). Here are a few quick notes from the article:

  • On raising money:
    • At the seed stage, when a startup is brand new, the decision is driven almost entirely by the people.
    • At the venture stage, when a startup has a prototype or an initial product but not yet a fully functional business, the decision is some combination of the people, as with seed rounds, but also product/market fit
    • At the growth stage, when a startup is fully in market and building out sales and marketing efforts to expand, the decision becomes far more about the financial characteristics of the business
  • How many pitches annually:
    • Out of the 2,000 we see, we will make somewhere between 20 and 40 investments per year. So around a 1-2% hit rate.
    • The very best VCs in the US collectively make perhaps 200 investments per year. Out of those 200, about 15 of them will generate 90%+ of the investment returns for the entire year.
  • On SaaS pricing:
    • But if I were to give general advice, I’d say that we see far more SAAS startups underpricing their product than overpricing.
    • TLDR: When in doubt, double prices. 🙂

Want to read more? Head on over to Marc Andreessen answers questions from Stripe Atlas founders.

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