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I joined a startup a while back after being in a bigger company for many years and I was baffled by the number of weird SaaS products in use, often for one small function. At least for a couple of these SaaS companies, I later heard, were run by friends of our former CTO. So maybe this isn't just a VC thing, but a startup culture thing. You buy my marginally useful product, I'll buy yours.

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Yeah thinking about it more, I agree with you it is both.

We 100% purchased products because the CTO was friends with the other CTO. The other thing was the sales people jumped between startups and would just sell to their same contact list they always have. I wouldn't be surprised they did deals where we bought their product and they bought ours for the same price.

Also, the last start up I worked for used all the products of other start ups funded by the same VCs. It's like a keiretsu of early adopters.

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