ExpandBorn Multi-Product
More products = More fun!
Multi-Product is the holy grail for software businesses. Acquiring customers is usually one of the most expensive aspects of building any software company. Selling multiple products to the same customer allows you to amortize that sales and marketing expense, expanding ARPU and TAM. It also can deepen the customer relationship, increasing net revenue retention and driving lifetime value. Further, in smaller markets, multi-product changes from a nice-to-have to a fundamentally necessary strategy for building a large business.
All of this is a bit obvious. What is perhaps unintuitive is how vertical SaaS businesses are better positioned from the get-go.
Vertical SaaS vendors (VSVs) are inherently multi-product. Their merchant customers want a single point of accountability; by leveraging a control point, VSVs are well positioned to deliver multiple integrated products that reduce friction and cost.
At Tidemark, we try to open-source our thinking as much as possible to help founders win; however, as investors, we can’t give everything away in public. If you’re an operator or founder, you can request access to the rest of this piece below.
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