Last week, my firm SurePath Capital Partners released its annual State of SMB Software Report, which looks at fundraising and exit activity in the SMB software space in North America.
Website builders have been around almost as long as the internet itself. As you would expect, this is a busy market. Sitebuilderreport.com tracks 35 vendors. There are many more. Interestingly, only 4 of the 35 vendors get a good rating. Clearly, this is a large market that is ready for new and better solutions.
Strangely, despite the size of the opportunity you don’t find too many SMB companies in most VC portfolios. You see plenty of consumer and enterprise-focused startups, but much fewer on the SMB side. The reason for this is that it’s “hard” for companies serving SMBs to grow at the rate that can deliver “venture” returns.