Keep pulling the thread on Jeff Horing.
EMC acquired VMware for approximately $650 million and later sold it for $60 billion, representing one of the most successful private equity deals.
SoftBank's Vision Fund generated a return of at least four times its investment in Arm.
Insight Partners' current fund size is approximately $12 billion, and the firm deploys over $3 billion in capital annually.
Insight Partners believes that gross retention is the single most fundamental driver of exit valuations for large software companies.
Wiz was able to double its net new bookings each year for a period of six years.
Some of Insight Partners' largest exits, including Monday.com and Encino, originated from initial investments of under $25 million that grew to over $200 million.
AI is predicted to be a massive Total Addressable Market (TAM) accelerator for established software companies.
A $1 billion exit is no longer considered a major victory for top-tier venture capital firms like Benchmark and Sequoia.
Companies like Databricks and OpenAI are staying private longer and raising multiple large, IPO-like funding rounds in the private markets.
Jeff Horing asserts that Net Retention is one of the least informative metrics for evaluating software businesses, despite its popularity on Wall Street.
Very few of the top 20 market cap software companies have a gross dollar retention rate in the low 80s percentage range.
The change in net new bookings (the second derivative of growth) is a more powerful predictor of a software company's future success than its overall year-over-year revenue growth rate.