The Fate of Over-Financed Software Firms

Bill Burnham has a nicely empirical post on the fate of software companies who have received dollops of capital as outsized as that gifted on Webroot this week. It ain’t good:

…after Webroot announced their $108M round of financing, I tried to find all of the VC investment rounds in history that have been at least $90M or more. The three that I found on VentureSource indicate that the track record for $90M+ VC rounds into Software companies is more like a trail of tears. All three of the companies I identified have either gone out of business or have been merged/acquired after they have become shadows of their former selves.