The Software as a Service (SaaS) industry is in the midst of a dynamic growth phase, attracting substantial investments in recent years. According to the findings of a comprehensive report by Grand View Research, the global SaaS market achieved a valuation of USD 158.2 billion in 2020, with a projected compound annual growth rate (CAGR) of 11.7% from 2021 to 2028.
This remarkable expansion is powered by the swift adoption of cloud computing technology, enabling businesses to access software and services via the internet-a strategy that proves to be both cost-effective and operationally efficient compared to traditional on-premises solutions.
Another driving force behind SaaS’s trajectory is the escalating demand for digital transformation across industries. As enterprises increasingly transition to online operations, the demand for sophisticated software solutions to streamline business management intensifies.
Key Features of SaaS Moving Forward:
Lowest Risk
All investors look for opportunities where the risk is minimal with a maximized return, whether venture capital, angel investors, traditional loans, or revenue-based financing. In the past, investors have been wary of jumping into the new and unknown market of SaaS, but there has recently been a refocus. Software companies are now gaining a reputation as one of the highest returning investments with little to no capital loss.
Steady Performance
This year has been a test for SaaS in performance against market turbulence. Not only have most tech companies managed to avoid significant loss during the pandemic, but they have also shown remarkable growth. This is due in part to the fact that most product-based services have turned to some technology savior when faced with business struggles. Using software as a service has proven to be cost-effective as there is an increase in working from home, and the subscription business model grows.
New Innovation
The SaaS industry is continually showing great innovation in offering brand-new options that change the face of business in all spheres. A few features to keep an eye on as an investor and SaaS developer are:
- Cloud-based services
- Artificial Intelligence (AI) integrations
- Low/No Code Interface
- Customizable Features
- Interconnected Applications
There has never been a more opportune time to step into early-stage development of SaaS business. At RevTek Capital, we desire to help you take advantage of this moment and optimize your business’s growth for a bright future in SaaS. Contact us today to discuss your future and capital options.
