PE Modeling - Software - Bookings to ARR (First Time)

Based on the most helpful WSO content, here are some resources and insights for learning about building an ARR waterfall, retention stats, and customer segmentation in tech-focused private equity:

Learning Experience:

• First-Time Learning: Many professionals in tech-focused PE may encounter building an ARR waterfall and related tasks for the first time in their PE roles. While some may have exposure to similar concepts in tech investment banking, the depth and specifics can vary.
• Expectation: There might be an expectation for those coming from a tech IB background to have a foundational understanding, but the detailed work often requires on-the-job learning and adaptation.

Recommended Resources:

1. Newsletters and Blogs:

   • Stratechery: Highly recommended for valuable insights into the tech industry.
   • A16Z Weekly & Ben Evans’ Blog: Great for staying updated on tech trends and investment insights.
   • The Information: Though pricey, it offers in-depth articles on tech companies and trends.
   • StrictlyVC: Focuses on venture capital and tech industry news.
   • Mattermark Daily: Provides data-driven insights into startups and tech companies.

2. Books and Articles:

   • Security Analysis: For understanding investment philosophies.
   • Damodaran on Valuation: Essential for valuation techniques.
   • Margin of Safety: Offers insights into risk management and investment strategies.
   • Irrational Exuberance: Discusses market psychology and valuation.
   • One Up on Wall Street: Provides practical investment advice.

3. Online Courses and Platforms:

   • Khan Academy: For foundational math and finance concepts.
   • MIT OpenCourseWare (OCW): Offers free courses on various subjects, including finance and statistics.

4. Forums and Community Discussions:

   • Wall Street Oasis (WSO): Engage in forums to gather insights and ask specific questions related to PE modeling and tech investments.

Practical Tips:

• Five-Minute Google Sessions: When encountering complex topics, spend a few minutes researching to build a foundational understanding.
• Networking: Connect with professionals who have experience in tech-focused PE to gain practical insights and advice.

By leveraging these resources and engaging with the community, you can build a solid understanding of ARR waterfalls, retention stats, and customer segmentation in the tech-focused PE space.

Sources: Helpful Resources For Breaking Into Equity Research, Keeping Up with the Zuckerbergs (Learning About/Staying Up-to-Date on the Tech Industry), Learning to learn - A short guide at becoming better at what you do, Selfstudy resources, Learning to learn - A short guide at becoming better at what you do