Software-As-A-Service Shows 8x Growth Over Last 5 Years

Posted in News by Ben Worsley

In terms of revenue and investor interest, software platforms show no sign of a slowdown.

Audio version available here.

Are you old enough to remember AOL CD-ROMs? (Note: they're  now collectibles). The days when software was installed via a single disk purchase have passed; today's software is subscription-based and cloud-hosted. Software as a Service (SaaS), a favorite revenue model of private equity investors, has been growing rapidly over the last half-decade.

PE Investments in SaaS 2015-2019

The latest data available (which was published in March 2020) shows that the value of SaaS venture capital investment in 2019 was over $40 billion, eight times the value five years earlier.

And now, with the prevalance of work-from-home, we've seen huge gains in revenue for SaaS companies like Zoom. In fact, despite the fact that the global economy is expected to contract by 4.5 percent, over 50 percent of recently surveyed businesses said their SaaS expenditures would stay the same or increase.

We are looking at a number of company platforms today whose business plans recently attracted the eye of equity investors.

BrightHire is a platform for interview management that has received $3 million in seed funding. To help businesses create diverse and talented teams, the software’s business strategy is to help companies eliminate bias from the hiring process through the leveraging of Artificial Intelligence (AI) and machine learning. The platform can be integrated with Zoom and compiles data driven and collaborative recruiting. Flybridge Capital led the round and had involvement from Ground Up Ventures and several other VCs and angels.

Podcasts are becoming an increasingly popular advertising option, but how do you ensure that you are advertising on the right podcasts to reach your target customer?Chartable, known for its weekly podcast download charts, has expanded its business model to include a podcast analytics and attribution platform that helps companies discover podcasts on which to advertise. Chartable counts most of the largest podcast publishers among its clients, and also offers a free version for smaller, independent podcasts to help them reach their target market. Chartable announced a $2.5 million seed funding round led by Greycroft with the participation of Initialized Capital.

One in six Americans is a family caregiver and the accumulated value of their unpaid work is $470 billion per year. These informal caregivers increase the work of the health care industry, decrease the number of doctor and emergency room visits, and allow the elderly to age at home. Unfortunately, work is taking its toll, with family caregivers reporting higher stress and depression. TCARE has developed a SaaS platform to help identify this emotional toll and provide resources that prevent burnout and deliver better outcomes for both the in-home caregiver and the loved one they support. TCARE recently announced $3 million in seed funding from SixThirty Ventures and Aflac Ventures.

Zuperhas developed a workforce management platform that helps companies reduce red tape and provide better service. Their platform focuses on-site based busines models such as cleaning, HVAC, plumbing, electrical and landscaping. The company announced $1.1 million in seed funding to expand its client-base. The round was led by Prime Venture Partners with the participation of Gunderson Dettermer.


Ben Worsley is Marketing & Creative Director at Masterplans.


Tagged: businessplan, funding, entrepreneurs, startups, saas
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