A fundamental insight about finance: Suppose the bank has $250k and you want to buy a house costing that. The bank, by convincing you to take out a mortgage, ends the day *materially* better off than it started, because your promise to repay is worth *a lot* more than $250k.
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But effectively the equity markets let you sell someone very attractive cash flows bundled with an operating business that maaaaaaaaybe they’re paying quite a lot of money for relative to similar software factories.
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Also much more dependant on the actions of the saas company whereas a bank doesn't really influence the default rate much after the mortgage is signed.
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i'm inferring from your logic that the same would be true for all 'subscriber' type businesses Patrick - do you agree?
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