Square’s acquisition of Weebly, its largest to date, signals the beginning of a consolidation wave that we have been expecting at SurePath for some time. It also suggests the beginning of a competition to see which tech company can become the first all-in-one small-business solution.
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.