The glum news that “VC funding is down again this quarter” doesn’t matter to more than 80% of new software companies around the world. The startup environment for modern SaaS founders is much better than it was just a few years ago.
Early-stage SaaS VCs keep saying, “We’re back to reality like it was in 2019,” with reasonable startup valuations and fewer investments in higher-quality startups.
That’s true for VCs, but the world has improved massively for SaaS startup founders in the last five years.
Most modern B2B SaaS startups are now created by practical founders who are building valuable software companies without big funding.
It’s a much better time for founders to create and grow software companies now than in 2019, and it keeps getting better every year.
Here’s why:
1) Creating real SaaS software is much cheaper, easier, and better than it was five years ago.
You can build your first sellable SaaS product without big outside funding now.
All platform technologies, including cloud hosting and databases, security frameworks, pluggable components, API integrations, and dev tools, have improved drastically in the last five years.
You don’t need as many developers to create amazing value for your customers. And AI is already helping developers multiply their productivity again.
2) Affordable talent is available to grow your startup team efficiently.
The funding-fueled bubble of overhiring and overpaying for tech talent is over. Hundreds of thousands of talented marketers, salespeople, and, yes, even developers are looking for sustainable and enjoyable work.
Most SaaS founders I know are getting 100+ applicants for leadership roles they couldn’t fill just two years ago.
3) Remote work is an efficient startup superpower.
Remember the pre-COVID world, when you needed an office in a big city to recruit local talent? And then you wasted time commuting and having too many in-person meetings?
These days, you don’t need an office or local talent. You can find the best talent anywhere in your country or around the world.
There is also a huge global network of experienced SaaS talent that can help you grow your company efficiently without raising an expensive funding round.
4) The global software market is bigger than ever.
Yes, there has been a dip in SaaS demand from the largest companies during the post-COVID period. But software continues to “eat the world,” with more companies of all sizes using more software worldwide every year.
Every industry uses more industry-specific software that was powered by the COVID-era kick in the pants that moved tech consumption forward. Laggard verticals are finally consuming more software too.
5) Less VC funding means fewer over-funded competitors.
Sustainable SaaS companies have an advantage over their over-funded peers that won’t survive when they can’t raise again.
Why else do you think now is a great time to grow a SaaS company without big funding?
#practicalfounders
