Software as a Service (SaaS) comprises applications hosted by a third-party provider which are accessed by users over the internet. Alongside PaaS (Platform as a Service) and IaaS (Infrastructure as a Service), it is one of the central components of cloud computing.
Think of well-known services such as Salesforce, Oracle, Dropbox and Google Docs, and you will immediately understand the issues that SaaS companies solve. In short, they have completely transformed collaborative working and – given that they are generally purchased by companies on a subscription basis – have often saved corporations huge amounts of money by reducing the need for expensive custom solutions.
Why invest in SaaS?
2017 saw the return of the tech IPO, yet it is not just social media behemoths such as Snap Inc that have caused waves among investors. Cloud-computing firms such as MuleSoft and Okta floated in the first half of 2017 on the New York Stock Exchange and NASDAQ respectively, with Dropbox following suit in 2018. With exits for early-stage investors becoming an increasing possibility for some of the more mature SaaS companies - there is a lot of excitement among investors.
In 2021 the Synergy Research Group reported that across seven key cloud service and infrastructure market segments, operators, and vendors, revenues were in excess of $150 billion for the first half of 2019. A 24% growth on the previous year. And it doesn’t show signs of stopping. Gartner, Inc reported that the Software as a Service market continues to expand, with worldwide end-user spending on public cloud services forecast to grow 23.1% in 2021 to total $332.3bn, up from $270bn in 2020.
Early-stage SaaS companies have generally benefited from venture capital and private equity investment from angel investors to get their products off the ground. They have also benefited from an increasing demand for services, with huge numbers of users in B2B roles such as accountancy, human resources and customer relationship management.
Why invest with SyndicateRoom?
Our Access EIS fund builds a diversified startup portfolio for you by co-investing with experienced angel investors. It aims to build a portfolio of at least 50 companies for each investor to further mitigate risk, and to replicate annual market growth in the UK startup sector.
What SyndicateRoom offers:
A data-driven approach to venture capital investing that aims to minimise risk.
Access to a larger portion of the startup market through co-investment with experienced business angels.
Generous tax reliefs as part of the EIS scheme for qualifying investors.
Low minimum investment of £5,000.
Previous SaaS investment opportunities
While traditionally early-stage funding for SaaS companies has come from venture capital, as mentioned above, SyndicateRoom is proud to have helped several companies in this sector, including those listed below, raise startup funding.
SyndicateRoom is FREE to join
With SyndicateRoom you gain access to invest alongside professional investors receiving the same share class and same share price.