Enterprise Software Companies
topic on 8 shows · 10 statements across 10 episodes
Another Podcast 
the Neon Show 
No Priors 
Invest Like the Best 
the MAD Podcast 
the a16z Podcast 
TBPN 
20VC
10 statements about Enterprise Software Companies, every show
Enterprise software companies only pretend to offer outcome-based pricing
“No one does that outcome. They talk about it, but they just tip, they just pretend that they do it. No one puts a two billion dollar deal on the line for an outcome based resolution.”
Most enterprise software companies cannot effectively ingest huge amounts of capital
“And I think a lot of enterprise software companies, they cannot ingest like a huge amount of capital. Like if you give me like a billion dollars right now, I don't know if I grow it like, you know, a thousand times faster than I am right now. And I don't neces…”
Coogan: Market valuation pressure has not shown up in tech financials
“Because a lot of the pressure that you're seeing in the market is not showing up in the financials. The companies are still growing. They're still producing cash. The business hasn't changed, but the perception of the future of the business has changed, and th…”
Desai: Investors will stay bearish until AI re-accelerates software growth
“That's what if I'm an investor, and you know, we speak to investors all the time, that's what they are looking for, that hey, would this, will AI re-accelerate this company's growth? And unless you show re-acceleration, they are going to say, okay, maybe I'm n…”
Karp: Aggregate corporate cost structures will drop despite higher top-tier talent pay
“Workers are gonna become more expensive, the overhead's gonna become less. Truly, basically, artist-shaped people are gonna be incredibly valuable, and they're gonna demand to be very highly paid. So, But the aggregate cost structure will come down.”
Rayapati: Fewer than 60 enterprise software companies have ever reached $1B ARR
“If you look at, enterprise software companies, how many of them have gotten to ten billion plus? There are like four or five. That's it. How many of them have even ever gotten to a billion plus? There are less than 60.”
Evans: Tech regulation does not affect most enterprise software companies
“Well, obviously, I feel like, you know, it doesn't actually matter to most people in tech. A, no one cares, and B, it doesn't matter very much to people in tech. Most people building enterprise software companies, they're not affected by any of this stuff.”
a16z data shows top revenue startups almost always overlay direct sales
“If we go through our portfolio, if we go through the data that we have, we look at the companies that actually hit the most revenue, and in almost every case, they overlaid sales on top of the organic growth.”
Casado: Pure organic enterprise software growth rarely achieves hyper-linear revenue
“Some companies like, you know, listen, we're just going to do organic growth. And they don't actually do sales. And in our experience, these tend not to be kind of hyper growth on the revenue side, right? So they'll continue to kind of grow customers, but it's…”
Waters: Enterprise software startups should target $400k to $1.5M annual contract values
“I think a hundred is too low. Like I would try to get to. 400 to 1.5. And the critical thing that happens at that is not that you extract more money. It's actually that you can be a better advisor. Like you can actually put talent on the ground and you'll find…”