As the tech landscape and market have evolved with dizzying speed over the last decade, we have seen the emergence of a pair of unlikely bedfellows: SaaS companies and SMBs.

Seemingly overnight, there has been an explosion of SaaS companies servicing the SMB market — and to much success. Just over a month ago, Freshworks, a purely SMB SaaS company, went public and currently touts a market cap of over $8 billion, while Asana, another such company that went public last year and has only recently begun to venture upmarket, has a market cap of . The massive success of SMB SaaS companies is undeniable, even if still nascent, and is simultaneously disarming the SaaS world.

Not even a decade ago, the SMB market was one that tech companies — and the VCs funding them — historically turned a cold shoulder to. Their argument was always the same: SMBs are too diverse, their problems too varied, the ROI too low and the churn too high.

What, then, unlocked this market for SaaS companies? Product-led growth.

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