enterprise software

“One of which is, if you really think about it, it's a business, it's a 95% gross margin business at the end of the day.”

“The construct of our industry is one of invest over five years, return over that next five, and so that's kind of, it was built 30 years ago. I don't think that model really applies specifically to enterprise software.”

“When we do our analysis, there's only probably 10% of the private equity firms out there in that space that have done half a dozen deals. We've done over 500 or so.”

“There is negative working capital associated with the business, and when you think about how the mature industries at the time were consolidating, it still is a winner-take-most type of a market.”

“I hate when anyone says, just do this, just go change the UI on your product. And that's always strikes me as like that person has never sat in my shoes and I am never be able to convince them that, yeah, do you know what it's like to change the UI on an enter…”

“We skew very heavily towards enterprise versus consumer because we think it's easier to predict success when someone's writing a check versus how individuals respond to a product or to a new social media engagement, etc.”

“We went from five to seven times EV to revenue multiples for enterprise software companies to 20 times, and now we're back to five to seven times.”

“We think this is just a great vintage To be deploying capital given this major reset in valuation.”

“Most of those companies can't raise growth equity anymore because growth equity is running more towards AI than software.”

“And enterprise software has become the largest part of the global economy. Even though it's so large, it's continuing to grow in mid to upper teens compounded annual growth rates as far as you can accurately predict things.”

“Our average company has about a 625% ROI to its customer.”

“Historically, software was trading six to eight, nine times forward revenue multiples. At the height of 20, 21, you saw it peak at a little over 17 times forward revenue multiples.”