Chapter
The Future of Software Companies
Companies are going to start going out of business over the next two years and software companies need to start acting more capital efficiently to preserve their cash. There will be three major sources of slowdown for software companies next year due to cost-cutting measures.
Clips
Due to the current economic circumstances, many small businesses are expected to close over the next two years resulting in logo churn rates increasing from a historical 15% to potentially 25-30% as companies begin to cut costs.
1:06:03 - 1:08:25 (02:21)
Summary
Due to the current economic circumstances, many small businesses are expected to close over the next two years resulting in logo churn rates increasing from a historical 15% to potentially 25-30% as companies begin to cut costs.
ChapterThe Future of Software Companies
EpisodeE108: Doxing debate, Nuclear fusion breakthrough, state of the markets & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Venture capitalists often put an enormous amount of pressure on startups to grow at an insane rate, which can lead to burning an enormous amount of fuel.
1:08:25 - 1:11:41 (03:16)
Summary
Venture capitalists often put an enormous amount of pressure on startups to grow at an insane rate, which can lead to burning an enormous amount of fuel. However, slowing growth and aiming for a "gray bar" instead of a "purple bar" can be more sustainable in the long run.
ChapterThe Future of Software Companies
EpisodeE108: Doxing debate, Nuclear fusion breakthrough, state of the markets & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The lack of capital-efficiency can lead to private equity firms taking over a company, and ultimately profiting in place of the founder.
1:11:41 - 1:13:30 (01:49)
Summary
The lack of capital-efficiency can lead to private equity firms taking over a company, and ultimately profiting in place of the founder. To prevent this, founders should prioritize preserving cash and avoiding profligate spending.