Schalit: Pure SaaS margins beat tech-enabled physical businesses on profitability
Emmanuel Schalit · 20VC: Why Raising A Mega-Round Makes Your Life Harder Not Easier, Why Your Board Is Not Your Boss and Lessons on Successful Board Management & The Biggest Breakpoints in Company Scaling with Emmanuel Schalit, Founder & CEO @ Dashlane · Dec 6, 2019 · at 17:08
Emmanuel Schalit, Founder and CEO of Dashlane, contrasts pure software companies with real-world tech-enabled businesses like Uber and WeWork when explaining capital efficiency.
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“When you think about some of the very large public or non-public companies like, you know, ride sharing and office space sharing, these are tech-enabled companies for which technology is somewhat important, but that structurally have very low gross margins because they live in the physical world. Companies like us and many others, like, you know, the Zooms and the Slacks of the world, we are pure play software players, which means we have super high gross margins, which means being profitable is not the fundamental challenge. If we can grow fast, we can get to profitability quickly.”
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