SaaS Funding Explodes: New SaaS Trends Report

Published today is this awesome SaaS Trends Report by Tibco Analytics. Reporting on the SaaS revolution, this is one for the SaaSophiles as its jam packed with a...

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Published today is this awesome SaaS Trends Report by Tibco Analytics.

Reporting on the SaaS revolution, this is one for the SaaSophiles as its jam packed with a mother-load of SaaS data. 33 Pages of accessible analysis including; Which VCs invested the most into SaaS in 2014 (it wasnt Sequoia), Which SaaS Companies raised the most (Slack didn’t top the charts) and what were the biggest SaaS exits of the last four years. Can you guess?

Well, you don’t have to. Heres the highlights:

SAAS FUNDING EXPLODES TO $11.7B IN 2014

fireball explosion - red fire on black

The success of SaaS companies such as Workday and ServiceNow has prompted VC Investment activity in the space to skyrocket, seeing growth of 70% YoY.

Overall, SaaS investment has almost tripled since 2011.

CALI SAAS INVESTMENT GREATER THAN ALL OTHER STATES COMBINED

View Of Famous Golden Gate Bridge By Night

California-based VC-backed SaaS companies have raised $16.6B from 2011 – 2014, more than all other states combined, which raised a cumulative $11.7B.

500 STARTUPS, SV ANGEL, A16Z LEAD SAAS VCS

 

500 startups

500 Startups has been the most active SaaS VC over the past four years. SV Angel is the second most active, investing in companies like Zenefits, and Domo Technologies. A16Z rounded out the top three with notable investments that included Box, Slack, and Lookout.

 

DROPBOX TOPS LARGEST SAAS DEALS IN 2014

dropbox

Storage software firm Dropbox’s Series C was the largest SaaS deal in 2014, followed by SurveyMonkey’s $250M growth round and Automattic’s $160M Series C

BUSINESS INTELLIGENCE & ANALYTICS DOMINATE SAAS INVESTMENTS

Mind Over Documents

BI, Analytics & Performance Management companies made up the largest area for VC investment based on deals and dollars over the past four years. CRM was second in both funding and deals, while Ad, Sales & Marketing was third in deals.

VC-BACKED SAAS EXITS UP 66% YOY

Hubspot IPO

VC-backed SaaS IPOs and M&As both reached four year highs in 2014.

The 2014 class of SaaS IPOs included Hubspot, New Relic, Castlight Health and Zendesk among others. Notable acquisitions included VMWare’s $1.5B purchase of AirWatch and Salesforce’s $390M acquisition of RelateIQ.

HALF OF ALL EXITED COMPANIES RAISED <$10M

happy excited businessman raising hands up and looking up under

49% of all VC-backed SaaS exits raised less than $10M before exiting. At the other end of the spectrum, 7% raised over $100M including LinkedIn, Workday and ExactTarget.

WORKDAY IPO TOPS SAAS EXITS

workday-logo_0

The top 10 SaaS exits over the past four years were dominated by IPOs, with Workday’s IPO which valued the company at $4.49B leading the way. Veeva Systems was second with one of the most capital efficient VC-backed exits of all-time, having raised just $4M before its $4.4B IPO.
https://www.cbinsights.com/research-saas-company-trends

This Concludes the highlights and you’ll find much more in the full report available here:

by Alex Theuma @alextheuma

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