Allied Advisers published report focuses primarily on SMB SaaS, which has been growing rapidly with notable outcomes in the sector such as the recent Freshworks $1.03B IPO, Mailchimp’s acquisition ($12B+, one of the largest boot-strapped exits) and growth of private companies like Calendly (last valued at $3B), Notion (last valued at $10B) among other success stories such as Paycom, Shopify etc.
SMB is the back-bone of the US economy; 99.9% of all US business are small. With rising SaaS adoption by small business for enhancing productivity, we remain optimistic on the long term view of sector. While not surprisingly, SMB SaaS undoubtedly has higher churn than Enterprise SaaS, SMB SaaS has significantly better operational metrics when it comes to sales and marketing expense, R&D expenses, EBITDA margins and less sector competition. Our report covers nuances of SMB SaaS and we believe that these businesses continue to offer compelling opportunities for investors and buyers.