My intuition is that rate of failure in software, where its much more winner take all, would be higher than brick and motor businesses, which constantly fail.
I think it's entering a winner take all market that's strongly correlated with VC money. There's plenty of software companies that outlive restaurants and startup cycles, doing pretty common B2B work, but they are unlikely to accidentally get a valuation based on a probability of winning a winner take all market.
My intuition is that rate of failure in software, where its much more winner take all, would be higher than brick and motor businesses, which constantly fail.
So really, this doesn't seem surprising.