The Trillion-Dollar Subscription App Opportunity — Nico Wittenborn, Adjacent

This week, David and Jacob sat down with app investor Nico Wittenborn. Nico is the founder of Adjacent, a new investment fund focused on mobile-first subscription companies. Prior to founding Adjacent, Nico worked at Point Nine Capital in Berlin and Insight Partners in NYC. Nico’s investments include Calm, Revolut, Oura, and Reflectly. In this episode, you’ll hear about: (4:10) The formula for a breakout SaaS business: engaged users. (5:00) Stickiness, engagement, and churn: B2B SaaS vs. consumer app businesses. (6:56) Identifying nascent markets before they become mainstream; meditation apps (Headspace & Calm). (14:00) The lines between consumer and business use cases are getting blurry. (19:51) We’re in the early stages of figuring out subscription app pricing; Salesforce. (24:46) Pricing your subscription app: balancing adoption, data collection, and user price sensitivity. (39:55) Increased mobile spending and subscription fatigue. (48:26) Sophistication of today’s apps and technology; Oura ring.