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> previously healthy surplus in the SaaS market is shrinking Margins that were very attractive before, but many industries have small margins and work just fin
by calvinmorrison 8mo ago
> previously healthy surplus in the SaaS market is shrinking
Margins that were very attractive before, but many industries have small margins and work just fine. restaurants abound on tiny margins.
- theturtletalks 8mo agoExcept restaurants bring tangible value and revenue every day. How many SaaS are losing money but bank-rolled by VC funds and are valued at a way higher multiple than restaurants are?
- calvinmorrison 8mo agoWell exactly, lets see it normmalize.
- jaredklewis 8mo agoI mean define "work." Restaurants are a famously good way to light money on fire. IIRC something like half of restaurants go bust within the first five years. So I don't think anyone is going to be celebrating if the message is "Don't worry guys, SaaS businesses are now like restaurants: low margin and high risk."