Josh James, the founder and CEO of Domo, a Utah-based business software company, has raised $450 million from venture capital and private equity investors who value his company at $2 billion.
Domo has 1,000 customers while its nearest competitor, Tableau Software, has 23,000. So how does James justify his huge valuation?
That was the main question I posed to him during an interview at the Code/Enterprise: San Francisco event last week.
He answered that Domo makes a higher average revenue per customer than Tableau does. He went on to argue that Domo, the software he kept secret for nearly four years, is more useful than competing products. In time, the marketplace will bear that out: Domo has been publicly available for less than a month. You can hear him say all of this, plus talk about his views on taking Domo public (hint: Sooner rather than later) in the video of the full session.
This article originally appeared on Recode.net.