SaaS Product Development · SaaS Software

Too many tiny-small SaaS products. Does anyone have thoughts on consolidation in this space?

Saurabh Gupta Product Leader | Ex - Google, Zapier

March 30th, 2021

There has been an explosion of small SaaS tools in last 2 years. Choice is good but there are a few problems.


* How many products can you realistically buy? Is there an opportunity for a suite?


* Every small SaaS company has fixed costs. So, why not consolidate to offer savings to customers.



Scott Orman Product Mgr, Creative Innovator

March 30th, 2021

Agreed. All those small tools ("but they only cost $10 or $15 a month" or "$x a month per user") can add up really quickly! It's amazing to run through the list of tools or services and then tally up what the additional cost is that is being added to your monthly burn rate, when you're trying to start something on a dime - it can be shocking.

Jeff Lyons Management consultant, investment banker, BOD/Advisory Board Member

March 30th, 2021

Saurabh, this is a great question I am exploring with 2 small B2B SaaS company clients. I’d like to connect with you on LinkedIn (will send an invite) and if you’d like we can set up a short call to discuss. Regards, Jeff

Alon Avramson Cofounder and CEO of Cycles-Trader, stock market algorithmic forecasts

March 30th, 2021

Zapier or Integromat or Bubble with RapidApi could do the job

gkraeger Looking for a partner that can setup a sales team and/or partnerships.

March 30th, 2021

Agree 100% currently doing this in the restaurant space.

Nisarg Amin Founder @ Overtone Ventures

March 30th, 2021

Definitely see opportunities for consolidation as is already evident by a constant stream of acquisitions by big tech. Not too sure about offering a suite with broad integrations because the experience and functionality of individuals SaaS will be lost to some degree (and both consumers and SaaS companies will resist). Acquisitions in niches make more sense. Building an integrated bundled payment offering is also an intriguing play IMHO. Happy to connect and discuss.

Adam Greene Founder and CEO of Klaatch, experienced entrepreneur, mission passionate & commited to transparency

March 30th, 2021

I think this is a great in theory, but I suspect that in the real world how these small SaaS companies agree on valuation will actually be a huge hurdle to getting to a deal?


Nisarg Amin Founder @ Overtone Ventures

March 30th, 2021

Further elaborating on Adam's point - Yes, getting a bunch of SaaS to agree on valuation would be a tall order initiative. Rather pick a category/sector and consolidate there. This does get into PE/SME so less of a traditional startup model. But it is being done and can be done if of course, that is the entrepreneurship path one seeks.


A centralized subscription manager and/or payment offering on the other hand is more startup(ish) and could be valuable for a range of teams.

Saurabh Gupta Product Leader | Ex - Google, Zapier

March 30th, 2021

To answer Adam's question about valuation. There are two options.


a. Build an "original" (Netflix style)


OR


b. Find companies that are more evolved or have stagnated and will go for reasonable valuation.