WeWork has been posing as a tech company (albeit unsuccessfully) since its inception, and given their recent troubles, it’s a good time to step back and evaluate what makes a company tech. Today, tech = SaaS, and gross margins tell the story. Real software margins float anywhere from 70-90%, while WeWork’s sit at 20%. The truth is companies should be valued based on these margins, not whether or not they’re “tech.”
startup failures by stage
startup failures by stage
startup failures by stage
WeWork has been posing as a tech company (albeit unsuccessfully) since its inception, and given their recent troubles, it’s a good time to step back and evaluate what makes a company tech. Today, tech = SaaS, and gross margins tell the story. Real software margins float anywhere from 70-90%, while WeWork’s sit at 20%. The truth is companies should be valued based on these margins, not whether or not they’re “tech.”