Two recent news events offer some additional insights into the trajectory of SaaS for SMBs. As we have said previously, we expect many zigs and zags as SaaS companies who focus on building software for SMBs try to find their sweet spot.

The size and valuation of Service Titan’s D round — $165 million with a post-money valuation of $1.65 billion — tells us that these SaaS platforms are demonstrating both growth and resiliency among SMBs. Yet Service Titan is not a simple product, which may explain why the company today has just 2,500 business customers using the platform and an estimated 50,000 technicians.

In terms of the overall market — 2,500 is a drop in the bucket — but Service Titan seems focused on operators with at least 20 technicians, and there are far fewer of those. The $1.65 billion valuation raises even more eyebrows when you consider the per business or per subscriber valuation is $660,000.

Another question that pops out of this news is, what is ServiceTitan going to do with its new wad of cash? Are there that many more local businesses in the home services category that have at least 20 technicians? Does its product roadmap envision ServiceTitan becoming the operating platform for its customers?

Those writing these large checks must feel pretty secure about the company’s fortunes. While  During the print Yellow Pages heyday local and SMB generated incredible revenues and margins. We really haven’t witnessed this level of excitement since, except perhaps in a few areas like SEM.

In other SMB software news, Square announced this week that it is adding an option for merchants and business owners to offer their employees health care, retirement benefits, and other human capital services. In the CNBC article Square indicates that health care and human capital benefits were cited by 42% of Square users as a top new product request. This reinforces our view that Square and others SMB SaaS companies would be rounding out their product and solution offerings to include services that are immediately adjacent to their core business and sometimes even less adjacent.

It’s easy to imagine additional consolidation in the SMB SaaS space as some of the larger companies seek to increase their wallet share and ownership of the SMB business management platform position.

At the Tech Adoption Index, we’ll continue to follow these important moves in the SMB SaaS world and share our point of view.