SaaS is still heating up. Here are 11 charts to highlight the trends, investors, and companies you should know.

SaaS is one of the hottest sectors for VC investment right now. We break down what’s been happening in the space in 11 charts.

 

2014 SEES SAAS COMPANIES RAISE $2.5B+ EACH QUARTER

VC-backed SaaS companies raised $2.5B+ in all four quarters of 2014. Q2’14 saw the highest quarterly amount deployed over the past 4 years due to $100M+ deals including Automattic, Flatiron Health, Anaplan and Insidesales.com.

Quarterly SaaS funding Tibco

CALI SaaS INVESTMENT GREATER THAN ALL OTHER STATES COMBINED

California-based VC-backed SaaS companies have raised $16.6B from 2011 – 2014, more than all other states combined, which raised a cumulative $11.7B.

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SaaS investments by State

500 STARTUPS, SV ANGEL, A16Z LEAD SaaS VCs

500 Startups has been the most active SaaS VC over the past four years. SV Angel is the second most active, investing in companies like Zenefits, Github, and Domo Technologies. Andreessen Horowitz rounded out the top three with notable investments that included Box, Slack, and Lookout.

Top Investors SaaS overall chop up

DROPBOX TOPS LARGEST SaaS DEALS IN 2014

Dropbox’s Series C was the largest SaaS deal in 2014, followed by SurveyMonkey’s $250M growth round and Automattic’s $160M Series C.
Top SaaS Deals VC backed Companies

THE TOP 5 AREAS FOR SaaS INVESTMENTS

BI, Analytics & Performance Management companies dominated the bulk of the deals and dollars for VC-backed SaaS investments over the past four years. CRM was second in deals but was followed closely by Advertising, Sales, and Marketing.

SaaS by Sub Industry Tibco Report

VC-BACKED SaaS EXITS UP 66% YOY

VC-backed SaaS IPOs and M&As both reached four year highs in 2014. The 2014 Class of SaaS IPOs included Hubspot, New Relic, Castlight Health and Zendesk among others while notable acquisitions included VMWare’s $1.5B purchase of AirWatch and Salesforce’s $390M acquisition of RelateIQ.

Exit Trend Tibco SaaS

HALF OF ALL EXITED SaaS COMPANIES RAISED <$10M

49% of all VC-backed SaaS exits raised less than $10M before exiting since 2011. At the other end of the spectrum, 7% raised over $100M including LinkedIn, Workday and ExactTarget.

Raised pre Exit Tibco

THE TOP 5 SaaS ACQUIRERS – ORACLE LEADS

Oracle, the company notorious for its acquisition prowess, led all acquirers of VC-backed SaaS companies over the past four years with over 10 deals. Notable acquisitions included BlueKai, TOA Technologies and Vitrue.

SaaS Acquirers Tibco

4% OF SaaS EXITS ARE UNICORNS

Less than 5% of VC-backed SaaS companies saw disclosed exit valuations at or above $1B. Of companies with disclosed valuations at exit, 11% exited for $1B+ including Workday, Veeva Systems, and LinkedIn, among others. On the other end of the spectrum, 30% of all exits with disclosed valuations were below $100M

Exit Valuations Tibco

BI COMPANIES DOMINATE IN EXITS

BI, Analytics & Performance Management led all subindustries in exits, with 87 total VC-backed exits since 2011. Notable exits included Splunk, The Climate Corp, and New Relic. Ad, Sales & Marketing was second with 59 exits, while CRM was third with 38 exits.

Industries for Exits Tibco

WORKDAY IPO TOPS SaaS EXITS

The top 10 SaaS exits over the past four years were dominated by IPOs, with Workday’s IPO which valued the company at $4.49B leading the way. Veeva Systems was second with one of the most capital efficient VC-backed exits of all-time, having raised just $4M before its $4.4B IPO.

VC Backed SaaS Exits Tibco

Want more data on SaaS companies? Check out our full Q1 2015 SaaS report or sign up for our venture capital database below.

 

  • Sunao Munakata

    This is really great. Can I translate this into Japanese and post it on our blog with proper attribution?

  • CB Insights

    Sunao – Sure thing. Please link to this original and indicate that it’s by Tibco Analytics and CB Insights.

    Please send to us when done as I know some of our Japanese clients would love to see it as well.

    Thanks for reading.

    Anand

  • Sunao Munakata

    Anand, Thanks! I will let you know when the translated article is published. Best,

  • pathfollower

    Nice! Sunao have it translated! It will help us SaaS B2B in Japan. (We need ppl to understand that B2B SaaS are a pretty sure bet, but they do need a lot of finanance.)
    Hiroki Kudo

  • Sunao Munakata

    That’s so true. Everyone is talking about smartphone, C2C, etc. But real money lies in enterprise market. The challenge for us is, though, even people in venture capitals and investment bank don’t know the potential of the market. I will let you know once I have it translated.

  • Sunao Munakata

    I’ve posted the blog. Here’s link. http://innova-jp.com/cbinsights/ This is great.