My guest this week is a good friend and a business mentor of mine. Chetan Puttagunta is a general partner at Benchmark Capital and has a remarkable track record of investing in early-stage software businesses, including several like Mulesoft, MongoDB, and Elastic that went on to be public companies.Chetan has been my key guide for understanding the world of enterprise software as we at O’Shaughnessy Asset Management have built an investing platform called Canvas. His advice has been critical to our early success. In this episode, we explore the history of software and software investing, and go into the details on how to build and grow new software businesses. We discuss product, sales and marketing, recruiting, scaling, and everything in between.Please enjoy this great conversation with one of my favorite business and investing thinkers.For more episodes go to InvestorFieldGuide.com/podcast.Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.Follow Patrick on Twitter at @patrick_oshagShow Notes1:34 – (First Question) – How Chetan found MongoDB and decided to invest in it8:01 – The evolution of databases in the growth of technology16:19 – Market penetration of this space and what investors should be thinking about21:46 – Advice how companies can build software effectively25:12 – Tactics to effectively implement empathy led product building30:33 – Companies asking users what to build vs telling users what they want34:26 – The need for the right capital, and patient capital in particular37:55 – Creating the perfect customer experience44:37 – Common reasons they don’t invest in a company48:48 – Lessons on scaling, especially in sales and marketing52:47 – Best recruiting pipeline strategies59:56 – Pitfalls of unit economic traps1:00:23 – The Dangerous Seduction of the Lifetime Value (LTV) Formula1:01:34– The Hierarchy of Engagement1:02:18 – What has changed for Chetan in his time working with the team at Benchmark1:06:009 – Later stage life cycle business considerations and Amazon’s AWS1:13:29 – The business model of open-source software1:15:54 – Being default open1:17:53 – Kindest thing anyone has done for ChetanLearn MoreFor more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclubFollow Patrick on Twitter at @patrick_oshag