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Risk / return trade-off still holds - great insight! Performance through-the-cycle is a big question. One can point to Salesforce (founded 1999, IPO 2004), whi
by tomkubik 7y ago
Risk / return trade-off still holds - great insight!
Performance through-the-cycle is a big question. One can point to Salesforce (founded 1999, IPO 2004), which has been around for 20+ years... However, big sample bias here (ditto for my article, with sample n = 1). Salesforce, a big-category-defining company - may not be representative of moderately-sized businesses.
Whoisnnamdi - per your post, revenue retention looks like a key metric driving valuations!
- doh 7y agoMy point wasn't that all SAAS business are going to be in trouble, rather than the growth equity is going to be impacted because they are funding only SAAS businesses. There is no hedging and as such, once business stop paying for certain SAAS services, they will in turn stop paying for others and so on and so on.