GenuineVC David Beisel's Perspective on Digital Change

May 16, 2005

Jeff Bussgang reported from the annual VC Conference, “The enterprise software business model is dead… VC appetite for standard enterprise software appears to be dwindling to nothing.” And Jeff Nolan simply replies, “agreed.”

But even though enterprise software is dead, it’s not really going to die. Despite indications otherwise, VC’s will continue to fund enterprise software companies for three reasons:

1. While the overall model and outlook admittedly looks grim, there are still a few remaining pockets where innovative start-ups will fill in gaps with new technologies facilitating localized change.
2. Fledgling enterprise software companies will dress up and adopt buzz-word monikers like Software-as-a-Service and open source. Then it’s sexy, and more likely fundable.
3. VCs, especially those on the East Coast, are used to funding enterprise software companies. It’s really tough to change, as old habits die hard.

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  • Lee Hower
     - 3 hours ago
    @notmattgeorge Matt H was just being funny that notaries aren't thought of as an unruly bunch here but in places like France they're raucous
  • Lee Hower
     - 3 hours ago
    what if the VC-backed IPO "problem" isn't one of public investor demand but rather supply?
  • Lee Hower
     - 3 hours ago
    @mattcharris notaries in places like France and Italy are actually very highly paid, entrenched bloc
  • Rob Go
     - 3 hours ago
    RT @bgurley: Wow $ETSY IPO is amazing. (1) IPO market remains wide open. (2) This IPO was remarkably mispriced - less than half of trading …
  • Rob Go
     - 6 hours ago
    New post: Value Inflection Points http://t.co/kn3bKH3cch

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