In 2011, Marc Andreessen famously wrote a prescient claim that “software is eating the world,” and although that is very true, it is often forgotten that it was the use of the recurring revenue model that made it all possible. With recurring revenue, the First Principle of Growth changed. Since that claim by Andreessen, hundreds of companies have gone public, mainly based on the outdated First Principle that Growth comes from winning new deals at any cost. Today we witness the valuations and stock prices, which initially soared but then came crashing down as the considerable cost of Growth becomes apparent. In this session, Jacco will provide insights into the reason behind this, what you as an operator need to look for, and what actions you can take.
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