Jason Lemkin’s SaaStr Fund has quietly marked down a cluster of 2021-era SaaS bets to zero, he disclosed in a 30 May post on saastr.com, acknowledging that “I’m going to lose all my money” on at least five portfolio companies.

The write-offs stem from checks written during the 2021 “Go Go Days,” when Lemkin invested at 100-200× ARR multiples in businesses that have since missed growth targets, burned cash, or failed to raise follow-on capital. While he did not name the companies, he noted that each had raised subsequent rounds at flat or down valuations before running out of runway in 2023-24. The markdowns were processed in the fund’s Q1 2024 valuation cycle and communicated to limited partners last week.

The admission lands amid a broader reckoning for SaaS investors who chased hyper-growth at peak multiples. According to PitchBook data cited by saastr.com, median late-stage SaaS valuations fell 71 % from 2021 to 2023, and down-rounds now account for 38 % of new financings. Comparable funds including Craft Ventures and Bessemer Venture Partners have taken similar markdowns, but few have spoken as candidly about total loss scenarios.

Lemkin told saastr.com the fund will now reserve follow-on capital only for companies with clear paths to cash-flow positivity within 12 months and will pause new investments until at least September. Limited partners will receive an updated portfolio dashboard by 15 July, and the fund’s next annual meeting is scheduled for October in Half Moon Bay.

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