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Harry Stebbings raises concerns about whether the current fund sizes in venture capital are suitable for vertical SaaS companies to achieve outcomes of $10 billion or more. He highlights a view from a noted investor that vertical products must own the full stack to reach such scale; otherwise, building a $10 billion plus company becomes substantially harder.
Stebbings also questions if the present generation of venture investors can generate adequate returns based on these fund sizes, inviting further debate within the VC community.
Stebbings’ concerns regarding fund size constraints and return potential in venture capital align with his earlier emphasis on a strategic investing approach that advocates for a double down strategy to maximize outcomes. His observations on the challenges facing vertical SaaS echo previous warnings about broader market sentiment, notably his identification of a casino-isation trend in public markets as volatility continues to intensify.