SaaS class startups have become a global phenomenon

emerging SaaS (software as a service) kind of start-up companies emerge in an endless stream, and when these young companies emerge, the financing market will change. In this paper, the author Tomasz Tunguz is a red dot venture capital investors, he analyzed the reasons for the globalization of SaaS companies.

Canada, Israel, China, India is becoming a fertile ground for the SaaS class company; a new generation of software companies are all over the world come to the fore, in these emerging enterprises, lack of market value of millions of dollars of the company. For example, Canada’s Shopify, Hootsuit; Australia’s Atlassian; New Zealand’s Xero, which is just a few of them. When these young entrepreneurs emerge, the financing market is how to change it?


according to Crunchbase’s statistics show that the U.S. market for SaaS class venture capital investment increased from $1 billion 500 million in 2010 to $7 billion today. 2016 data has declined, this is because the changes in the environment and this year has not yet ended, the annual data has not been fully accounted for. Outside the U.S. investment in the SaaS industry grew 6.3 times over the same period, for investors in the SaaS industry, this is undoubtedly a good news.


if the data is split by different countries, we can see that the market outside the United States is unstable. But the long-term trend is growing. For example, Brazil, Canada, Germany, Spain, France, Britain, India and israel.


was $2 million in Brazil when it was used as a horizontal reference, while Israel had the highest value of $6 million, compared with France and germany. Canada’s SaaS industry environment is similar to the US in terms of stability and market size. A number of factors could lead to instability in the market, and the financing environment of each country is not the same – even the direction of the profession will be different. The same thing, we should speak with the data.


if the number of investment projects from the point of view, the data of each country is exciting. It is worth mentioning that, in 2016 the full year data is not yet fully statistics, but this does not prevent us from the conclusion: SaaS class start-up companies will be a big trend.

is worth noting that, in various regions of the SaaS venture companies can identify the characteristics and trends of the localization, which is the existing software companies have not done a little. Some of these programs may also break through the region

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