Building A Great Software Business - a great insight

BainCapital Ventures has a great publication (pdf) on "building a great software software business" Some insights "Imagine the following hypothetical. You are the CEO of a venture-backed software company. You are flush with $30 million in cash, aggressively investing in sales, marketing and product development. Sales are growing at 50% year over year and have been for the last several years. You are feeling pretty good about the business. Right? Wrong. History shows that this business will fail time and time again. The reality is that successful software firms grow much more rapidly and do so with much less capital requirements" "Remember that software growth is viral and customer-led – ensure customer referencability. Fewer customers with higher referencability is better than more customers with lower referencability" A must read - some great recommendations at the end......