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.
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.
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
Zapier or Integromat or Bubble with RapidApi could do the job
Agree 100% currently doing this in the restaurant space.
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.
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?
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.
To answer Adam's question about valuation. There are two options.
a. Build an "original" (Netflix style)
b. Find companies that are more evolved or have stagnated and will go for reasonable valuation.