How do no-code and low-code businesses raise money differently from SaaS? The speaker argues that cash-flow financing beats equity for most of them, but equity wins if your product scales to millions of users. Micro-targeting niche markets is where the real advantage lies.
So what's the role of capital in a low-code, no-code environment? And certainly there is returns on capital to be found in building these tools that allow people to make more of what they are looking for. But is there going to be the same kind of return on capital for, say, SaaS as we've been understanding it so far, leaving aside the interest rate implications of it? Or for tools in general, as you're able to start micro-targeting smaller and smaller markets, serving them better and better, that means more small businesses are going to be able to do a much better job. Where does the leverage come into play? Where is the strategic advantage that can be applied to a wider segment of the market? If the answer to that is hard to find, then there's lots of cash to be made, lots of cash flow to be created, which is a superior form of capitalization of, of the source capital for that kind of work. Where are you going to have something that can really go widely applied to a lot? That's going to be where, say, equity capital is going to create very much return.
