Clouded Judgement

APRIL 11, 2024

Is Software Rebounding? Azure has gone back above trend as they’ve benefited quite a bit form the recent AI boom There’s many ways of answering the question of “is software rebounding” when looking at performance from Q4. Some software companies also have seasonality in the “payback.”

Cloud 177

Cloud Software Azure AWS 177

Tom Tunguz

AUGUST 1, 2022

How much value does a successful software startup create per dollar of venture investment? Let’s call the value generated per venture dollar the MOIC (multiple on invested capital). Over the last 30 years, a venture dollar invested in a successful US software startup generated $10 of value. Notes on the data.

Startup 325

Startup Software Pricing Investment 325

Tom Tunguz

AUGUST 20, 2023

Since then, investing activity dropped precipitously. The red is a linear model based on data from 2010 to 2018 that predicts activity rates for each financing series of US & Canadian software companies. [1] The post-Covid surge in venture capital pushed valuations & activity to record breaking heights.

Investment 229

Investment Venture Capital Startup Finance 229

Andreessen Horowitz

FEBRUARY 22, 2023

They’ve often lived through the pain of bad software, diagnosed the cause of their suffering, and made it their mission to convince the world they have … The post Investing in Svix appeared first on Andreessen Horowitz. Every so often, we meet founders with unusually strong conviction about solving systems problems.

Investment 129

Investment Software Software Development Enterprise 129

Andreessen Horowitz

NOVEMBER 1, 2023

We’ve already used software to optimize countless tasks across countless industries, and it’s imperative that first-class software also be built to support one of the most important pieces of our public safety infrastructure. That’s why we are so proud to invest in Prepared.

Investment 109

Investment Wireless AI Data 109

The Daily Egg

APRIL 2, 2021

When you can’t keep track of project details and your team feels scattered, it’s time to try project management software. Often this is a business investment, but if you’re not ready to buy, you can take advantage of plenty of free options. The post Best Free Project Management Software appeared first on The Daily Egg.

Software Review 278

Software Review Software Management Investment 278

Tom Tunguz

FEBRUARY 6, 2022

If I gave you $10,000 to invest in one company today among the following four software businesses, which would you pick? Which investment will generate the greatest return? This is the question facing late-stage software investors today. Venture investing clocked more than $329b invested last year , up 10x since 2010.

Investment 257

Investment Pricing Business Model Enterprise 257

Tom Tunguz

MAY 3, 2023

The P&L differs from a classic software company. Investment in web3 companies will fall by at least 60% year-over-year in 2023. What other business suffered a loss of 80% of revenue & went from burning $2b per quarter to producing more than a hundred million in profit? So does the corporate structure. Net Revenue, $m 251.6

Software 283

Software Trends Revenue Investment 283

Clouded Judgement

SEPTEMBER 1, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Are Software Companies Over or Undervalued? Today I wanted to dig in to this question and its implications: “Are software companies fairly valued today?” Follow along to stay up to date! ” Let’s dig in.

Software Review 183

Software Review Cloud Software Revenue 183

Clouded Judgement

NOVEMBER 3, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Some of these drops rival one of the worst ever software earnings reaction of Tableau in 2016! On Thursday the software index (WCLD) was up ~3%! So what’s holding up software stocks valuations?? Follow along to stay up to date!

Software Review 161

Software Review Cloud Software Azure 161

Andreessen Horowitz

FEBRUARY 21, 2023

If aliens landed on earth and decompiled our software, every app would look roughly the same: some combination of networking, storage, and compute. The way developers consume these … The post Investing in Replicate appeared first on Andreessen Horowitz. It’s very rare to see a new building block emerge in computing.

Investment 102

Investment Software Development Machine Learning 102

User Pilot

OCTOBER 26, 2023

What is software ROI and how to measure it? TL;DR Software ROI, or Return on Investment , represents the financial and business benefits of implementing a software application while factoring in the cost of the investment. Calculating software ROI is crucial for informed decision-making for technology investments.

Outsourcing Services 105

Outsourcing Services Software Outsourced Development SaaS 105

SaaStr

OCTOBER 20, 2022

In my own portfolio , more of my investments had a record month in October than a rough month. And they say 2023 will be a banner year for enterprise software spend at least — growing a stunning 11% to $880 Billion. 32% are increasing investment in artificial intelligence (AI) and 24% in hyperautomation”, per Gartner.

Forecasting 231

Forecasting Artificial Intelligence Software Business 231

SaaStr

JANUARY 6, 2021

Q: I run a bootstrapped software company and our biggest customer (60% of our revenue) has offered on several occasions to invest in the company. Taking an investment from your largest customer certainly will complicate things. Rarely keep investing after the initial investment. But a VC investment is.

Investment 278

Investment Software Review Acquisition Pricing 278

SaaStr

MARCH 23, 2021

Battery Ventures recently put out its Software 2021 report with a ton of interesting learnings across the leaders in SaaS and Cloud. Battery Ventures’ data says while VC investment $$$ are on fire — they aren’t going into more startups. The post Battery Ventures: VC Investments Are Way Up. ” #2.

Investment 231

Investment SMB Acquisition Cloud 231

Clouded Judgement

DECEMBER 21, 2023

Subscribe now Is Software Rebounding? This is the first quarter we’ve heard that message, and a good leading indicator for the rest of the software buying universe. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. net retention and CAC payback).

Cloud 177

Cloud Software Benchmarks Retention 177

Clouded Judgement

SEPTEMBER 15, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Software Setup Currently, interest rates seem to be the primary driver of software valuations. This is for information purposes and should not be construed as an investment recommendation. Follow along to stay up to date!

Software Review 130

Software Review Cloud Software AWS 130

Clouded Judgement

JULY 21, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Are Software Companies Bad Businesses? There was some talk last week on the All-In podcast about software companies. The gold standard for all public software companies is GAAP net income in the fullness of time.

Cloud 130

Cloud Software Sales Hiring Scale 130

Tom Tunguz

DECEMBER 11, 2022

Average Software Public Value. As Michael Mauboussin writes in Expectations Investing , there’s information in price. Third, it’s the most substantive acquisition to announce this year after Figma’s announced its sale to Adobe. The M&A market may be thawing a bit. Revenue, $m. Revenue growth. Gross margin.

Acquisition 250

Acquisition Startup Software Pricing 250

Andreessen Horowitz

APRIL 27, 2023

With the inflection of large language models (LLMs), we’re witnessing a paradigm shift in software development and the computing industry as a whole. It’s like the Internet all … The post Investing in Pinecone appeared first on Andreessen Horowitz. AI is happening and a new stack is forming before our eyes.

Investment 82

Investment Artificial Intelligence AI Software Development 82

Andreessen Horowitz

FEBRUARY 8, 2023

In recent years, we’ve seen a renaissance in productivity software. And yet, the way that organizations communicate with … The post Investing in Macro appeared first on Andreessen Horowitz.

Investment 86

Investment Communication Software Enterprise 86

Andreessen Horowitz

JULY 13, 2021

Two decades into the cloud computing era of software eating the world, some corners of the economy are still far behind. Unfortunately law enforcement is one of them, which not only leaves around 800,000 law enforcement officers in the United … The post Investing in Flock Safety appeared first on Andreessen Horowitz.

Investment 140

Investment Cloud Software AI 140

Clouded Judgement

JUNE 16, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Growth Adjusted Software Multiples The last 6 weeks (since the start of May) has been quite the run for software companies. I’m using the period of 2010+ given that’s really when cloud software came about.

Cloud 130

Cloud Software Revenue Subscription 130

Andreessen Horowitz

MARCH 31, 2022

We wrote about the CFO in crisis mode and the need for better software to be built for the finance suite. … The post Investing in Datanomik appeared first on Andreessen Horowitz. If the average CFO is in a crisis, the emerging markets CFO serve are in an even bigger crisis!

Investment 101

Investment Finance Software Marketing 101

Casey Accidental

MARCH 29, 2022

A common issue leaders in product management, design, or engineering face is justifying investment in the “non-sexy” stuff. I’ll walk through some frameworks and examples from my career on how to drive excitement and investment in these critical areas that may not be properly valued or staffed currently in your organization.

Investment 139

Investment Underperforming Technical Team User Experience Scale 139

Andreessen Horowitz

NOVEMBER 30, 2021

For software companies, the velocity of the business is directly correlated to the velocity of the developers, making developers one of, if not the most, valuable asset on the balance sheet. In our software-led world, it’s imperative that every forward-looking … The post Investing in Trunk appeared first on Andreessen Horowitz.

Investment 101

Investment Software Development Business 101

SaaStr

DECEMBER 1, 2021

The state of software buying has changed. During SaaStr Annual 2021, Amanda Malko, CMO at G2, shared a fascinating look at the data that reveals shifting patterns in the way consumers purchase software. . Furthermore, 55% of companies plan to increase software spending in 2022.

Software Review 230

Software Review SMB Enterprise Software 230

SaaStr

SEPTEMBER 14, 2020

2 Cloud is Eating Software. The astonishing fact is: cloud is eating software. In just five years, Cloud will become the majority of the software market. By 2030, it is predicted to take over all technology and software. Hardware is turning soft, and software is empowering innovation. appeared first on SaaStr.

Technical Review 291

Technical Review Cloud Software Review Technology 291

Andreessen Horowitz

JANUARY 25, 2022

Software continues to eat the world. As the world recovers from a pandemic, the way we work and live has changed, … The post Investing in Prologue appeared first on Andreessen Horowitz. It’s never been a more exciting time to be a founder. Web3 is the next big leap for computing.

Investment 99

Investment Software 99

Andreessen Horowitz

OCTOBER 12, 2021

Build is one of the most foundational tools for software engineering. Traditionally, it is the step in software development that takes the files written by engineers and compiles them into machine runnable code, but build has become so much more. … The post Investing in EngFlow appeared first on Andreessen Horowitz.

Investment 100

Investment Software Engineering Software Development Engineering 100

Andreessen Horowitz

SEPTEMBER 16, 2022

As we write in our piece It’s All About The Money (Movement), moving money internationally is an opaque, fee-intensive process that requires two things: actually “moving” the money and leveraging onboarding and compliance workflow software.

Investment 83

Investment compliance Onboarding Software 83

Andreessen Horowitz

SEPTEMBER 30, 2021

One of the main forces that has driven the rise of crypto networks is composability –– the ability to remix and recombine software components, without needing authorization or approval from a gatekeeper. By removing walled gardens and empowering developers to … The post Investing in Forta appeared first on Andreessen Horowitz.

Investment 101

Investment Software Development Blockchain 101

Andreessen Horowitz

APRIL 27, 2022

It’s one of the few aspects of computer science that you can’t hide with a thin layer of software. It is needed as data … The post Investing in Convex appeared first on Andreessen Horowitz. Really hard. However, as applications scale, distribution becomes a necessity.

Investment 87

Investment Scaling Software Data 87

Tom Tunguz

MARCH 1, 2020

It includes a basket of all the next-generation software companies since 2014.* The bigger question is whether software purchasing habits change because of reduced travel and networking. Notice: I hold Zoom and Microsoft stock and others as investments in index funds. This is our familiar forward multiples chart.

Software 304

Software Travel Startup Technology 304

Andreessen Horowitz

MAY 3, 2022

We are now in the era of collaborative building, enjoying the benefits of many popular open source projects which power every company’s software stack. Developers benefit from not … The post Investing in Graphite appeared first on Andreessen Horowitz.

Investment 84

Investment Development Software Enterprise 84