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Public tech company's price to earnings does look historically reasonable.

And private companies are slowly going public at current valuations.

Yet public tech company's earnings to revenue is unusually high.


Open source doesn't fully explain this, as this alone is not a barrier to entry.

As US rates slowly increase, I expect to see an increase in currency headwinds.

Mid-sized mature software businesses have figured out how to run very very profitably (25%+ EBITDA margins). Tech management teams have learned from the giants (Oracle, SAP, etc.) about how to extract maximum value from their IP and past investments. This innovation helps drive earlier stage investment, as investors know that there is a potential for a ton of cash flow available down the road.

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