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Approaching Half a Million Customers: How to Win in SMB with BILL CEO and Founder René Lacerte

SaaStr

Then, in 2017, with around $50M in revenue, BILL added payment capabilities. SMB Unit Economics: Why Is 6 Quarters the Right Target for SMBs at Scale? So, SMBs are asking for consolidation, and that’s why Bill has acquired companies and continues to add more financial operation capabilities. That was probably 2012.

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7 Secrets to a Successful SMB Go-To-Market Strategy with PayFit Co-Founder and CEO Firmin Zocchetto and Accel Partner Philippe Botteri (Pod 576 + Video)

SaaStr

If a SaaS business hopes to win over the SMB market successfully, it will need a precise GTM approach. Founded in 2015, PayFit is a software company that empowers entrepreneurs and SMBs to digitize payroll and HR processes. Boterri’s company Accel invested in PayFit in 2017 and again in 2021.

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Public SaaS Companies Are Now Worth $1 Trillion

SaaStr

From $8 billion in market cap in 2017 to $117 billion today! RingCentral went from SMB to enterprise-grade contact center. A $2 billion market cap is amazing. But $20 billion is now becoming “common”, if that term can be used. Shopify is the crazy one. Zendesk IPO’d at $1 billion. Today, ti’s worth $11 billion.

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5 Interesting Learnings from Shopify at $4 Billion in ARR

SaaStr

Shopify’s first quarter revenue: Q1 2021: $989 million Q1 2020: $470 million Q1 2019: $321 million Q1 2018: $214 million Q1 2017: $127 million Q1 2016: $73 million Q1 2015: $37 million Q1 2014: $19 million Q1 2013: $9 million. While Shopify’s enterprise offering, Plus, is doing extremely well, SMBs grew even faster. Still a lot.

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5 Interesting Learnings from Expensify at $140,000,000 in ARR

SaaStr

Still, 119% NRR from SMB is world-class even for 5+ seats accounts and sometime to strive for if you have similar sized customers. #4. An SMB sale, but less and less a single seat sale. 110%+ NRR from SMBs usually requires team-level functionality, and Expensify is a good case study here. Expansion so far is limited to U.K,

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The Power of Going Long in SaaS

SaaStr

Today, just 2 years after that, Hubspot in a very similar space (just more SMB) and with very similar revenue, is worth $18B. Worth $2B by 2017. Vista buys Marketo for $1.8B A little more than 2 years later, it was resold for $4.75B to Adobe. That’s 18x. Shopify: Founded 2006. Original CEO steps down, Tobi has to take over.

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How to Drive NRR Over 100% With SMBs

SaaStr

There’s one theme we’ve reiterated over the years, at least since 2017 or so when we interviewed the CEOs of Twilio and Veeva back-to-back : To grow quickly after $100m ARR, you probably need a second core product. Pretty good for SMB SaaS. Box at $800m ARR is about 30% SMB / 70% enterprise, the inverse of Shopify.