June 2019 SMB Software News Recap

SMB Index

JUL 10, 2019 - Sara Defina

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

June was a quiet month for deal making among constituents of the SurePath SMB Index. However, one player made major headlines:

H&R Block announced that they have entered into a definitive agreement to acquire Toronto-based accounting and invoicing software firm Wave Financial Inc. for $405M in cash. The acquisition is expected to accelerate H&R Block’s SMB strategy and expand its product offering for its SMB users. Upon completion of the acquisition, Wave Financial will maintain its leadership team and will operate independently within H&R Black from its headquarters in Toronto. Our SurePath Capital team has put together some insights on the deal here

New Product Launches and Partnerships

There were several new product launches announced by constituents of the SurePath SMB Index in June:

Square for Restaurants announces a host of new third-part integrations to help centralize their ordering, delivery and payment processing. Integrations include Postmates, DoorDash, Chowly and other food delivery services, allowing sellers to have direct access to a robust suite of delivery integration partners.

Zendesk Inc. introduces Zendesk Duet, combining Zendesk Sell and Support in one offering. Duet is expected to help businesses operate their sales and support teams more freely without constraints.

Shopify announces various platform enhancements at its annual Shopify Unite conference with a focus on giving direct-to-consumer brands everything they need to build and manage a business. Key innovations include: an expansion of its fulfillment network allowing merchants of all sizes to deliver their products fast at a low cost, and a newly updated Shopify Plus platform that will provide enterprise brands more tools and capabilities.  

AppFolio launches two new value services for large portfolio property managers and owners: AI Leading Assistant and Utility Management. The new offerings will provide a complete solution for utility invoice processing and analytics and will strengthen the capabilities of APM and APM Plus system of intelligence.

New Leadership

There were a few leadership changes by constituents of the SurePath SMB Index in June:

SurveyMonkey hires Autodesk Executive, Debbie Clifford, as its new Chief Financial Officer. Debbie Clifford will join the leadership team on July 8th and will oversee all aspects of finance. After the addition of Clifford, SurveyMonkey’s executive team will be majority women. Debbie Clifford spent the past 13 years in various finance positions at Autodesk, with her most recent role as VP of financial planning and analysis. 

Eventbrite, announces the appointment of Casey Winters as its new Chief Product Officer. In this role, Winters will lead product management, design and research teams to drive innovation for event creators globally. Casey Winters has many years of experience scaling technology businesses as a skilled growth and product leader, and most recently served as a strategic advisor to Eventbrite. 

Activity in the SMB space outside of our SMB Index 

In other news:

Google acquires business intelligence software start-up looker for $2.6 billion, in order to bring together a complete data analytics solution for its customers.

Cvent acquires mobile event technology provider, DoubleDutch to fuel event engagement growth.

Slack, the workplace chat app goes public, trading at an opening price of $38.50 per share.

LevelTen Energy, a renewable energy marketplace, raises $20.5 million in series B financing led by Prelude Ventures.

BigTime Software, a Chicago-based B2B software company, raises $14 million led by Wavecrest Growth Partners.

Biz2Credit, an NYC-based online lending platform, raises $52 million in series B financing led by WestBridge Capital.

PayFit, a France-based payroll service provider, raises $79 million.

Irvine, California-based restaurant accounting software provider, raises $88 million in funding led by Iconiq Capital.

Sara Defina
Written By:
Sara Defina is an Analyst at SurePath Capital Partners responsible for supporting clients through the technical aspects of M&A and capital raise transactions. Sara leverages her prior experience as a manager in KPMG’s Valuations Deal Advisory group and assisting early-stage technology companies seeking financing through MaRS Innovation.

About SurePath Capital

Based in Toronto and San Francisco, SurePath Capital Partners is the only investment bank focused exclusively on the global SMB software market. We work with sellers in this market to ensure they are funded for growth and positioned for meaningful exits. In addition, we work with buyers in this market to help shape their strategy and execute acquisitions.

Follow us on LinkedIn and Twitter for regular updates on deals and trends and in the SMB software market. Say hello: info@surepathcapital.com

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