SaaS investing has been on fire the past years and the returns have actually been gushing in, with IPOs like Datadog, direct listings like Slack and acquisitions like Qualtrics (which is now being spun back out )developing billions of wealth and VC returns. Dozens more SaaS start-ups are on deck to head toward their exits in the same way, and lots of VC funds– particularly those with deep portfolios in the SaaS area– are going to perform well. The colossal returns we are seeing today for SaaS portfolios are unlikely to repeat themselves. The huge risk in the short term is just rate: SaaS investing has actually gotten a lot more
costly. It might be difficult to bear in mind, however simply a years ago business model of” Software application as a Service”was revolutionary. Much in the manner in which it took years for cloud infrastructure to take hold in corporate IT departments, the concept that one didn’t license software however paid by user or by use with time was practically heretical. For VCs going to make the leap into the space, costs were( relatively )cheap. Financier attention a
years ago was extremely centered on consumer web and mobile, driven by Facebook’s blockbuster IPO in Might 2012 and Twitter’s IPO the list below year. While every financier was going after offers like Snap( chat), the smaller population of financiers targeting enterprise SaaS(or even more exotic areas like, gulp, fintech )got lots on what would later on end up being the years’s most significant unicorns. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.