r/startups • u/Sorry-Application401 • 3h ago
I will not promote Thoughts on sequoia article "services the new software?" I will not promote
I read this article by sequoia a while back and at waterloo I met a company called sequence holdings at a networking event. Essentially what they do is they buy a company and turn it ai native and hold forever unlike a traditional PE firm. They only raised $75 million but they bought Baldwin group with the dell family office for $7.7 billion. Long Lake bought Amex GBT for $6.3 billion.
I had coffee chats with engineers there and tbh they're both hiring the most talented engineers I've met - other than maybe frontier labs. I really think that this industry is like working for the next ramp and palantir - so many great founders have come from there. Ik palantir is rightfully very controversial but so many great founders were ex pltr FDEs. These companies do kind of the same thing as Palantir in terms of integrating the product but instead own the stack.
I strongly agree with the points made in the article and both companies have adopted the philosophy. I realized that while creating a B2B, selling to customers in a vertical where AI integration would be highly beneficial the company could be so much more profitable and agile. Sequoia mentions for every $1 spent on software $6 is spent on services and instead of selling a product maybe you should sell the service. What are your guys thoughts?
btw I can't send the link for some reason but check out services-the-new-software from sequoia.