Venture Capital Investing In Software Expected To Rise

Published: 3/18/2008 1:23:36 PM

I recently came across an interesting article on venture capital investment in software companies - by Bryan Stolle, a VC with MDV-Mohr Davidow Ventures.

The main thesis of the piece is that venture capitalists are expected to increase their investment in software startups, after several years of a flat investment environment.

Aside from the investment outlook, my take-away from the piece is that there will be a greater interest in mid- to later-stage deals, no doubt as a result of the uncertain exit environment with either M&A deals or IPOs.

The other nugget of insight is that now that SaaS is firmly on the map as a viable revenue and business model, software entrepreneurs will have to be familiar with all of the available business models and be able to speak to why they are choosing their go-to-market model for their company, before getting funding.

So, the game is getting tougher: entrepreneurs who want to find funding and have the best financial partners, need to have even more in-depth market knowledge than ever before.  Thoroughly understanding the business and financial dynamics of your software offering up front will be critical to your success.

Don Jones



Don Jones
CEO, VentureDeal

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