In my previous two posts, I took a look at venture-backed value creation across enterprise and consumer investments since 1995, highlighting that enterprise has traditionally been more attractive as a venture capital investment based on the distribution of outcomes. Also, I noted that there has been significant value created by consumer investments in recent history relative to other points along the venture capital timeline, mainly driven by a few, large outcomes. In this article, I investigate the relationship between invested capital and exit value per year.
Let’s say you already have one or two rounds of VC funding. Annual recurring revenue (ARR) is growing nicely, at a high double-digit or even a triple-digit clip. You’ve been growing virally from within the enterprise but want to take it up a notch. You still haven’t cracked one thing: how to sell an enterprise deal to the CIO.
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