software companies

5 statements across 4 episodes · 1 bullish · 1 bearish · 4 people on the record · first statement Jul 5, 2021 by Robert F. Smith · across every show →

Everything said about software companies, oldest first

Jul 5, 2021 neutral
Assertion Supported
Smith notes that 98% of global software companies remain privately held
“But the short answer here still, Ted, is 98% of software companies are private.”
Robert F. Smith Jul 5, 2021 ▶ 43:23 Private Equity Masters 3: Robert F. Smith – Vista Equity Partners (Capital Allocators, EP.202)
Feb 21, 2022 neutral
Insight
Wolfe: Software Winners Depend on Randomness and Momentum, Not Better Tech
“The problem is there are a lot of competitors in many of those businesses, and often the reasons why one becomes that runaway success, even in the power law distribution within a sector, is sometimes random. Sometimes it's related to locks. Sometimes it's rela…”
Josh Wolfe Feb 21, 2022 ▶ 18:20 Josh Wolfe – Caution and Innovation at Lux Capital, Venture is Eating the Investment World 8 (Capital Allocators, EP.236)
Jun 9, 2025 bullish
Prediction Not checkable as stated
Breach: GenAI Can Push Software Companies to Rule of 50–70
“As we think about incorporating generative AI into the actual operations of the software business, we can see companies getting to rule of 50, rule of 60, rule of 70, and being significantly more profitable over the next few years as these solutions get better…”
David Breach Jun 9, 2025 ▶ 27:28 David Breach – Software Specialist Enters Private Wealth (Private Wealth 6, EP.450)
Jun 9, 2025
Assertion Supported
Breach: About 96% to 97% of all software companies are private
“What's interesting about software, Ted, is about 96, 97% of all software companies are private.”
David Breach Jun 9, 2025 ▶ 34:48 David Breach – Software Specialist Enters Private Wealth (Private Wealth 6, EP.450)
Jul 6, 2026 negative
Insight
Dorsey: Return on Capital Is Increasingly Useless for Evaluating Modern Moats
“Today, I would argue return on capital is less useful. As a touchstone for does a company have competitive advantage? Because if you don't have any capital and your denominator is nothing, it's pretty easy to generate a high ratio, right? It's just math. There…”
Pat Dorsey Jul 6, 2026 ▶ 12:57 Moat Investing Nuances – Pat Dorsey (EP.509)
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