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Early-stage SaaS boasts best expected exit success rate for VCs Great article by Rosie Bradbury 👇 'SaaS is the bread and butter of venture, offering capital-lite business models with high profit margins. VC’s preoccupation with SaaS isn’t a coincidence. Historically, it has been one of the most lucrative areas for investors. And new research from PitchBook, developed using the machine learning-enabled VC Exit Predictor, shows that the expected future returns for SaaS far outpace other venture tech verticals. PitchBook’s VC Emerging Opportunities report calculated that the annualized expected returns for early-stage SaaS companies was 5.5% higher than the average of 10 VC tech verticals. That advantage has grown in recent years, up from 3.2% in 2017.' What factors contribute to SaaS consistently having higher expected returns compared to other tech verticals in the VC landscape? #tech #saas #vc #venture

Early-stage SaaS boasts best expected exit success rate for VCs SaaS is the bread and butter of venture, offering capital-lite business models with high profit margins. VC’s preoccupation with SaaS isn’t a coincidence. Historically, it has been one of the most lucrative areas for investors. And new research from PitchBook, developed using the machine learning-enabled VC Exit Predictor, shows that the expected future returns for SaaS far outpace other venture tech verticals. PitchBook’s VC Emerging Opportunities report calculated that the annualized expected returns for early-stage SaaS companies were 5.5% higher than the average of 10 VC tech verticals. That advantage has grown in recent years, up from 3.2% in 2017.

During the Venture Capital winter, The number of VC investments in US Enterprise solutions from 2023 decreased by 550% compared to 2021. Still, enterpirse SaaS businesses are very popular all over the world. ↳ 80% European VCs priorities B2B SaaS I'm sure that the graphic will be shining and rising in 2024, but the question is for how much? Take comments and look forward to hearing your thoughs!

Infographic: Revenue growth dispersion of US VC-backed IPO SaaS companies by quarter (2019 - 2024 comparative, follow the link) As enterprises feel pressured to buy into the AI revolution, they’re cutting back spending on other software tools—a shift that is crimping growth at SaaS leaders and startups alike. Revenue growth at newly public US VC-backed SaaS companies fell sharply in 2022 and has remained low, according to PitchBook data. The best of these companies were growing sales at more than 73% year-over-year in Q1 2022, a rate that declined to 32% in Q1 of this year. The median growth rate for the cohort is now 19%, down from 35% in Q1 2022. This cohort is a bellwether for the broader late-stage software startup market and an indication that the higher growth rates that were common pre-2022 remain elusive. (check comments for the link to the article) #insights #startups #SaaS #ai #artificialintelligence #impact #facts #staytuned

If seed funded SaaS companies have an NDR (net dollar retention) of 130%+, ACV (average contract value) of $10k+, they wont need Venture funding to grow, but everyone will then want to fund such a company. VC's should be careful about what they ask at which stage 😄 #vc #venturecapital #saas #marketing #founders

I wanted to highlight PitchBook's recent analysis that predicts SaaS companies will outperform all other venture investment categories. Good news for SaaS founders and their investors.  Some great data and insights! Feel free to reach out if you want to discuss our latest experiences with SaaS valuations.

Top E-commerce VC investors... only 2 are not from the US 1. Tiger Global Management (USA) - 120 investments in 5 years 2. FJ Labs (USA) - 83 3. Gaingels (USA) - 78 4. Alumni Ventures (USA) - 72 5-6. Accel (USA) - 69 5-6. Sequoia Capital (USA) - 69 7. Index Ventures (USA) - 55 8. Global Founders Capital (Germany) - 52 9. Salesforce Ventures (USA) - 51 10. Peak XV Partners (India) - 47 #venturecapital #ecommerce #investment Source - PitchBook

Got a SaaS idea? Here's how you can create a funding roadmap: 📈 SaaS is HUGE: $157 billion market with 30,000+ companies. However, 47% fail because they miss the target problem. 💡 Success Hack: Craft a killer strategy that tackles industry hurdles BEFORE pitching investors. Show them your solution game! 🌐 Your Moment: Dive deep into SaaS wisdom, nail your market, and craft a strong plan. Strategy is your secret weapon! Remember, the SaaS arena offers immense opportunities, but the right strategy is your key to unlocking its full potential. Your funding journey begins with a robust plan and a keen eye on industry-specific challenges. #saas #startupfunding #startupfounders #seedfunding #pitch #vcfunding