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Yet Another (ex-)VC Blog

Cloud computing, startups, and venture capital

The rise of the SMB SaaS solution

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Now the math gets interesting:

To build a $100m business on a $5 a month freemium tool, you need 2,000,000 paying customers.  Congrats to DropBox and SurveyMonkey.  But who else is pulling this off?  Not too many.

To build a $100m business selling to SMBs at $300 a month, you need ~25,000 paying SMB customers.  A lot.  But achievable.  If you dominate a large vertical, especially.

In fact, it’s easy to see, 5-7 years down the road — 15-20 $100m+ ARR winners here.  All selling verticalized solutions to SMBs.  It’s, finally, time.

The Rise of the SMB SaaS Solution.

via The Next Wave of SMB SaaS: True Solutions. Priced as Such. | saastr.

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Written by John Gannon

July 7, 2014 at 3:03 pm

Posted in Uncategorized

Tagged with ,

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