Introducing The SurePath SMB Index

Small business is the backbone of our economy. Before founding SurePath, I began my career as a CPA serving owner-managed businesses. As a CFO, I worked with two of the largest SMB-focused SaaS companies (FreshBooks and Shopify). As a VC, I invested in several companies targeting SMB including SweetIQ and Unbounce.

- Mark MacLeod, Founder & President, SurePath Capital Partners

At SurePath we are deeply passionate about the small & medium sized business (SMB) sector and believe that this market represents a huge opportunity for building and exiting technology companies Worldwide.

Over the last year, we’ve become intimately involved with the Global SMB software market. We have many clients there. We know the investors who target SMB. And we have begun building deep relationships with the most active SMB software buyers.

We believe this market is under-represented in most VC portfolios. This is because it can be hard to profitably acquire small customers as your business grows. We also believe there is significant opportunity for acquisition activity in SMB as buyers rush to serve the growing demand from small business owners for truly modern, cloud and mobile software tools to help them grow their businesses.

The SurePath SMB Index

Today, we’re excited to introduce the SurePath SMB Index (SCP SMB Index). This index tracks the overall market performance of 42 publicly traded technology companies that serve the SMB market. Over time, we expect this number to grow significantly. In fact, 16 of the 42 companies in the Index went public in the last 3 years.

Here they are, the 42 publicly traded technology companies that service the SMB market:

SCP SMB Index Constituents

Building the SurePath SMB Index

We examined the latest annual reports of 280+ publicly traded Software, SaaS and Internet companies.

For each company we determined if the majority or all of its customer base are SMBs, by reviewing and examining the description of customers they serve. We purposely excluded companies that serve enterprise level customers with some SMB exposure, as we wanted to focus on companies that predominantly serve SMBs.

This process helped us identify the 42 publicly traded companies to include in the Index.

Index Preview

The finer details

Each of these index constituents are weighted based on their market capitalization and the index starts from January 4, 2016 (the first trading day of 2016). We will  be re-evaluating the constituents and weightings quarterly to ensure that the companies included in the Index truly reflect public companies serving the SMB market.

A live feed of the index can be found on our website here.

Want more SMB?

This is the first of our publications around SMB. We will publish more pieces over time. You can sign up for our mailing list below to get our latest thinking around SMBs delivered right to your inbox!

It can be hard to build ‘big’ companies when you have to acquire many small customers. We have seen how that is done. In stark contrast to other markets, there are a small handful of large acquirers in the SMB space. We know them.

We can help you fund, grow and exit your SMB-focused startup. Say hello:

About SurePath Capital Partners
SurePath Capital Partners is the premier strategic financial advisor to today's emerging technology leaders. We help startups raise the capital needed to become market leaders and we help them achieve profitable, deliberate exit strategies.