October SMB Software News Recap
Published in
4 min readNov 14, 2018
Each month we report on news and updates for the companies in the SurePath SMB Index — a basket of publicly traded software and technology companies that serve the SMB market.
Acquisitions and Divestitures
October was one of the slower months in terms of M&A activity for constituents of the SurePath SMB Index in 2018 with just one acquisition to report on. Details follow:
- ANGI Homeservices acquires Handy Technologies Inc.— Handy Technologies is an on-demand household services platform and marketplace that connects users looking for household services with independent, pre-screened professionals at a fixed price. The transaction is expected to expand ANGI’s current network of service providers as well as pave their way into the gig economy space. Terms of the deal were not disclosed Handy had raised $116M prior to the sale.
New Product Launches and Partnerships
There were several new product launches and partnerships announced by constituents of the SurePath SMB Index in October. Highlights include:
- Intuit rolls out QuickBooks Online Advance platform targeting complex, fast-growing businesses— Through the QuickBooks Online Advanced platform, businesses will now have access to various 3rd party applications, advanced reporting, and customized tools to meet specific business needs. It will also include Intuit’s QuickBook Priority Circle Program, a premium customer service program to assist businesses with any technical and product questions.
- Intuit introduces new platform features and partnerships at Money 20/20 with the potential for better rates and valuable customer insights — Intuit announced several new capabilities in its latest platform update for TurboTax users, where they will now be able to connect their data in order to pre-fill applications within the Turbo and Mint products. Furthermore, Intuit has formed new partnerships with LendingClub and Wealthfront, which are expected to result in a reduced loan application process and give users access to personalized financial advice based on their TurboTax data.
- Square expands its bank-like service offerings through Square Installments— The launch of Square Instalments allows businesses who are using Square’s payment network to give customers the freedom to pay for large purchases in smaller fixed monthly payments. This product launch is in line with the Company’s efforts to expand access to financial services for business and individuals.
- Square launches Square Terminal, an all-in-one card processing device— The new innovative touchscreen product is an alternative to the legacy keypad credit card machines allowing sellers to process sales, accept all forms of payments, print receipts and offer a fair and flat rate for every transaction regardless of the card types.
Other SMB Index News
In other news:
- Zendesk releases a benchmark guide for enterprises — The Company’s new research report focuses on two types of large companies: Digital Natives vs. Digital Transformers. The report provides insights, best practices and key differentiating factors that sets apart industry leaders from its peers.
- Grubhub continues its expansion of delivery— The Company has announced that it has expanded into dozens of new markets across the United States, reaching a total of 100 new markets in 2018.
- H&R Block to offer upfront, transparent prices starting in January 2019— Representing an important shift in the tax industry and enhancing customer experience, H&R Block clients will be able to know the full cost of tax services prior to tax preparation.
- GoDaddy Inc.’s founder Bob Parsons resigns from the GoDaddy board of directors— Founder Bob Parsons has resigned from the GoDaddy board of directors, effective October 5th, 2018 as he plans to devote his full-time efforts to Yam Worldwide Inc.
- ANGI Homeservices announces CEO Succession— Brandon Ridenour, current Chief Product Officer, has been announced as ANGI Homeservices next CEO to succeed Chris Terrill. After a transition period, Mr. Terrill will step down as CEO and from the Board of Directors and continue with the Company in an advisory role.
- Shopify announces the opening of its first-ever physical space in downtown LA— Shopify’s mission of empowering entrepreneurs continues through its first brick and mortar space in Los Angeles, where business owners can obtain advice from knowledgeable staff, as well as connect with other members of the entrepreneurial community.
- Sarah Friar steps down as Square CFO— Sarah Friar steps down as Square’s CFO and has taken a job as CEO of Nextdoor. David Viniar, Square’s Lead Independent Director, will lead the search for a new CFO.
Activity in the SMB space outside of our SMB Index
Private and VC/PE backed companies need attention as well:
- Oracle acquires DataFox, a developer of “predictive intelligence as a service” across millions of company records
- Salesforce acquires Rebel, maker of “interactive” email services, to expand its Marketing Cloud
- Upwork shares rocket more than 50% higher at the open on their first day of trading
- ThinkHR secures $67.5 million investment from Guidepost Growth Equity
- G2 Crowd raises $55 million Series C round to continue revolutionizing business buying
- ORIX Growth Capital makes $20 Million investment in Infusionsoft
- Springbot closes $15 million in funding to power Marketing for SMB eCommerce
- Privy closes $4 million in Series A funding to accelerate growth
- Thunder Experience Cloud secures $6 million to take the lead in people-based ad serving
- Paladin Cyber raises $3.6 million
- Amazon Storefronts is a new retail hub exclusively for US small businesses
- Dropbox and Zoom announce strategic partnership to expand remote collaboration