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E29: Navigating the Software Industry's Evolution
Oct 30, 2023
The hosts discuss explosive growth in the software industry, challenges of demand generation, and the effectiveness of ecosystem-led growth. They also explore the delicate balance of home and work life, the importance of empathy in leadership, and the challenges of entrepreneurship. They criticize fake reviews on G2 and discuss the significance of personal happiness. The chapter ends with light-hearted moments and discussions on building a company, ice pods, Slack consulting, and the Republican party.
53:32
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Quick takeaways
- The software industry has experienced explosive growth, with the number of software companies on G2 increasing from less than 50,000 in Q3 2018 to 125,000 in Q2 2023, indicating a growth rate of 7% per quarter.
- Generating demand in the software industry has become more challenging, with the need for 1,000 to 1,400 touchpoints to activate an opportunity, compared to 400 touchpoints in the past.
Deep dives
Growing number of software companies on G2
The G2 quarterly state of software report reveals that the number of software companies on G2 has grown significantly. In Q3 2018, there were less than 50,000 software companies on G2, but as of Q2 2023, there are now 125,000 companies. This shows that the sector is growing at a rate of 7% per quarter. However, with the increase in software companies, there is also a rise in competition and noise, making it more difficult to stand out and generate demand.
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