AppFolio Shows That Niche B2B SaaS Is Serious Business

What you need to know

  • In a technology landscape increasingly dominated by industry-agnostic software giants, opportunities still exist for B2B SaaS services addressing niche markets. Since its IPO in June 2015, AppFolio — which creates B2B software for the Real Estate property management niche — has more than tripled its revenue and outperformed top tech stocks.
  • Niche B2B SaaS businesses typically have smaller total addressable markets (TAM), but benefit from: 1) avoiding the attention of major tech players; 2) stickiness with end users; 3) tight customer feedback loops that improve the product. 

How you can capitalize

  • After analyzing more than 700 software categories, we identified B2B SaaS opportunities servicing the Health (Dental Practice, Electronic Medical Records (EMR), Hospice, Vet) and Personal Care (Fitness, Spa, Salon) niches.

Let’s play a quick game of “Which one of these does not belong?” Facebook. Amazon. Netflix. Google (Alphabet). AppFolio.