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Fintech Scales Vertical SaaS | Andreessen Horowitz
This is what I call the "Hub and Spoke" model — leverage a core subscription userbase and then upsell additional offerings to gain a larger share of wallet from your core customers. Until recently, this option seemed out of reach for most Consumer SaaS companies struggling to simply generate enough demand to support a single product at scale.
Brett Bivens • The Consumer Subscription Roll-Up Opportunity
What’s notably missing from the existing subscription bundle is financial services. As Neo Banks look to compete with incumbents they have talked about their lower cost structure, and cheaper customer acquisition cost, leading to shorter payback period.
John Street Capital • The (Neo) Bank Bundle & Transition to Subscription Revenue
Deals will close faster and transaction costs will drop. Services such as Stripe, Google Analytics, Square and Shopify help buyers verify earnings and growth. Advances in revenue-based financing make it easier to buy and sell companies.
Dru Riley • Micro Private Equity: Building a Playbook, Abandoned Projects, Revenue-Based Financing
Just as the internet and web browser unlocked the previous shift, the new ease of embedding payments, lending, and other financial products will allow industry-specific software platforms (Vertical SaaS) to destroy multi-market/horizontal solutions like Salesforce. Ever smaller niches will be able to sustain venture-scale software companies because... See more