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Pre-Pitch Briefing

David Sacks

Co-Founder & Venture Partner at Craft Ventures

Check size: $1M-$50M

SeedSeries ASeries BGrowthSaaSenterprise softwaremarketplacesfintechAIcryptodeveloper toolssecurity/compliance

Their Thesis

Pioneered 'Bottom-Up SaaS' — the strategy of applying consumer growth tactics to B2B products. At PayPal he learned viral distribution; at Yammer he proved it could work in the enterprise, growing from zero to $56M ARR in under four years before selling to Microsoft for $1.2B. The core filter is predictable, compounding recurring revenue with strong unit economics. Invented the 'Burn Multiple' metric (net burn / net new ARR) that has become an industry-standard efficiency benchmark. Believes the best SaaS companies combine the growth potential of B2C with the enterprise budgets of B2B. Invested in 20+ unicorns. Operator-investor who thinks in SaaS metrics and has published detailed frameworks (Burn Multiple, Difficulty Ratio, The Cadence, Pipeline Metrics) that founders can reverse-engineer. Recently transitioned from General Partner to Venture Partner at Craft as the firm moved away from seed-stage investing.

How to Pitch Them

Come with metrics. He's an operator who thinks in SaaS metrics. Know your ARR, net revenue retention, CAC payback period, magic number, and burn multiple before the meeting. Show bottom-up adoption — users choosing your product, not a buyer mandating it. Demonstrate your Difficulty Ratio makes sense (deal size commensurate with sales cycle). If you're an AI company, show split AI/non-AI margins and a path to 70%+ gross margin. Show improving Burn Multiple, credible Rule of 40, and rising NDR. Don't pitch top-down enterprise sales without a PLG motion. He values founders who came from consumer or have consumer DNA — people who think about end-user delight, not just buyer procurement. Sub-60 day sales cycles for deals under $25K ACV. He respects founders who understand that product-led growth alone isn't enough — you eventually need to get good at sales.

What Excites Them

B2B SaaS with real traction and bottom-up adoption patterns. Founders who understand unit economics deeply (ARR, NRR, CAC payback, magic number). Products users love enough to bring into their org without a top-down mandate. Companies showing improving Burn Multiple, credible Rule of 40, and rising Net Dollar Retention. AI companies designed for model swapability so COGS improve over time.

What They Pass On

Top-down enterprise sales without product-led growth. Murky unit economics. Pre-product companies without a clear distribution thesis. Companies that require long sales cycles to get initial traction. AI companies locked to a single model provider with no gross margin improvement path. Startups where deal size and sales cycle are misaligned (bad Difficulty Ratio).

Key Frameworks

Crypto Moat Trifecta

Evaluating crypto projects on three dimensions: network effects, switching costs, and token incentive alignment.

In Their Own Words

“When we started Yammer, we were a bunch of consumer internet founders who decided to attack the enterprise. My mindset going into enterprise software is why can't we hack the distribution the same way that we did at PayPal with consumer products?”

— Various interviews on Yammer founding

“The best SaaS companies have 120%+ Dollar Retention each year.”

— The SaaS Metrics That Matter (Substack)

“The starting point for understanding a SaaS business is revenue growth — the best proof of product-market fit.”

— The SaaS Metrics That Matter (Substack)

Recent Writing

All-In Podcast: Crypto Market Cyclestweet_thread

Crypto follows predictable 4-year cycles tied to Bitcoin halving events.

The Craft of Venturesubstack

Insights on startup building, fundraising, and founder-VC dynamics from the PayPal Mafia era.

Framework for Evaluating Crypto Projectsblog

Network effects + switching costs + token incentives = the crypto moat trifecta.

Podcast Appearances

Crypto Investment Thesis — All-In Podcast
crypto cyclesBitcoinventure crypto

Craft Ventures Portfolio

Top Sectors

Enterprise51
Consumer16
SaaS3
Enterprise/Consumer2
Consumer/Enterprise2

Stage Distribution

Angel-Seed33
Venture32
Growth23
IPO5
Series B4
SendosoEnterprise
Venture
PearlEnterprise
Venture
People Data LabsEnterprise
Growth
PeregrineEnterprise
Venture
PipeEnterprise
Angel-Seed
PrimerEnterprise
Angel-Seed
ProductboardEnterprise
Growth
Replit
Growth
ReturnlyEnterprise/Consumer
Growth
RoboflowEnterprise
Venture/Series A

+ 106 more investments. View fund →

← Full profileCraft Ventures website