Embedded finance continues to be one of the most promising growth opportunities for software businesses. It allows SaaS operators to expand platform offerings and provide a more integrated user experience for their customers. The resulting ability to drive stronger growth, unit economics, and retention is clear—though the degree to which embedded finance ultimately impacts valuations has been an open question.
Now, by leveraging William Blair’s proprietary transaction data, we can prove that embedded finance drives valuation premiums for SaaS platforms executing on the opportunity. That’s the primary finding from our white paper, which explores the following topics:
- Comparing SaaS companies with and without embedded finance strategies on performance and valuation metrics
- Identifying key business factors and end-market characteristics that influence the suitability of embedded finance for SaaS platforms