[codegeek]

I disagree. As a bootstrapped SAAS founder, company makes decent profits and I don't worry too much about Venture Backed competition even though there are plenty. Yes, you cannot compete with VC backed competitors on "growth" numbers but OP asked about Profitable SAAS business which has nothing to do with Venture capital.

"the days of having your own little saas as passive side income are long behind us"

You are so far off. In fact, I think the days of small/profitable/bootstrapped SAAS businesses are just starting. A lot of people are realizing that the glamor of VC is not worth the hassle and if they are looking to create a decent income for themselves with entrepreneurial freedom, it is definitely possible now. In fact, almost everyone expects to pay for subscriptions these days (we can argue whether its good or bad). It is much easier to start a SAAS business today with barrier to entry being so low. Of course, it is extremely hard to get success with it but that's the case with any business.