Why are SaaS (B2B) companies significantly different than B2C companies?

In the last few months, since I left my full-time position at Webcollage (and our acquirer, Answers), I’ve had the opportunity to work with many entrepreneurs and early-stage companies — both business-to-business (B2B) and business-to-consumer (B2C).

While B2B and B2C ventures share several areas of commonality (company and leadership values come to mind), it is interesting to notice deep areas commonly different between the two: all the way from the business perspective to the (somewhat surprisingly) technology perspective.

The recent write-up by Michael Eisenberg at Aleph VC highlights one of the key differences and eloquently explains why in many cases the product matters more in B2B companies. The write-up is written from the viewpoint of an Israeli VC (and hence references challenges in hiring B2B/SaaS executives) but the merit of the write-up is agnostic to geography.

See here: Israel’s Subscription Challenge.

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