In the recap mode, here are the top seven SaaS startups that I am tracking: * Qualys – Managed security and compliance; Interview with CEO Philippe Courtot; Forbes Column: The Next VmWare.
PayCycle provides online payroll services for small businesses and for the accounting professionals who serve them. Their mission is to make paper-based payroll obsolete. Using a unique Do-It-With-You model, they guide users through the entire payroll procedure online – from paychecks to W-2s. The company has highly experienced professionals who have previously developed products like
We discussed the rise of On-Demand Software-as-a-Service (SaaS) in the enterprise as a 2008 trend. However, SaaS will rise in the Small-Medium Enterprise (SME) markets as well.
SM: You may have to do some of that equity/liquidity swapping due to the structure of venture funds. JH: One of our funding sources may have to close out their fund, and in that case we will go find someone to help do that. In fact we just recently had a conversation about this amongst
SM: I was reading an article about how a lot of startups are using credit cards to finance their early days. American Express is a very common way of financing startups, and I have used it myself. JH: Rene used to use that as well. It was a big day when he got his name
SM: That is good insight to carry to the audience in this particular type of business. I have heard that about the GoToMeeting product as well, that they have no vertical bias at all. They are trying to focus on very small businesses as well, and are finding no vertical alignment whatsoever. Switching topics, you
SM: Out of 5.2M small businesses, only 800,000 are using a software service for payroll? JH: It is under 16%, and that is why this is an attractive space because it is un-penetrated. All 5.2M of those people have some solution, but our belief is that a lot of them are doing it manually and
SM: Financial institutions seem like a great distribution channel for small business payroll. JH: I think the distribution strategy is to be where people are likely to buy payroll. Be on the web, be at retail, be at the accountant, and be at the banks. SM: You do the tax portion as well. How about