Growth investors should prioritize software that is critical to business continuity
Alex Clayton · 20VC: Spark Capital's Alex Clayton on How The Best Growth Investors Source, Evaluate and Win Deals, Why Market Depth Is Crucial When Analysing Markets & Why Capital Is Only A Temporary Competitive Advantage · Mar 25, 2019 · at 21:28
Alex Clayton, Partner at Spark Capital's Growth Fund, shares his key evaluation criteria for deciding whether a software business is a standalone platform versus a feature.
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“At the end of the day, it's like, is this product core to business continuity? So what does that mean? If you ask the customer or stakeholder, If you rip this thing out or if it shuts off, what's going to happen to their business? I think the best products are things that customers just can't afford to live without. At the growth stage, it's really important to invest in companies that are core to business continuity, in my opinion.”
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