Operators said

Strategy & market

Venture-backed 2021-vintage SaaS companies are in a worse position than PE-owned ones because no shareholder has enough control to act. Listen

Ganesan said PE owners at least have majority control and can restructure. Venture-backed SaaS companies that raised at high multiples have become 'zombies' that nobody owns enough of to fix. For that class, he said the best outcome is being bought by Bending Spoons ('getting spooned', which means getting capital back) and the worst is zero.

“You have a lot of zombie SaaS companies where nobody owns enough to be able to do anything.”

From 20VC: Is Seed Investing Dead Without a $1BN Fund? | Does Ownership and Price Matter When Companies Can Be $1TRN Exits | Are AI Revenue Numbers Real and What to Watch Out For with Venky Ganesan, Menlo Ventures.