Do VC’s fund service companies?

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JASON LEMKIN

Software services companies? Usually not, but like most rules, there are exceptions.

Sequoia and other leaders have funded Appirio, the largest service+ company in the Salesforce ecosystem.

Traditionally, the lower margins (<50%), lack of repeatability and scalability, and slower growth together make software services businesses not appropriate for traditional venture capital.

But break those rules? It can happen.

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Published on August 7, 2016
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