churn | Street Fight

The Coming Polarization of the SMB Software Market

Mark MacLeod

The Coming Polarization of the SMB Software Market

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.