Why are enterprise customers higher value? A few reasons: i) they can afford to pay more; ii) they prefer signing longer term contracts; and iii) they’re more likely than small customers to weather a recession; iv) they tend to give better product feedback that can help guide the product roadmap; and v) when you go to sell your company, your valuation will likely be higher as strategics and private equity firms tend to prefer enterprise customer bases for the reasons above.
sammy@blossomstreetventures.com
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