Private Equity Investing in Software as a Service (SaaS) Companies
We have previously shown the meteoric rise in private equity backed Software-as-a-Service (SaaS) companies. This post takes a closer look at these SaaS companies and explores the end industries they serve.
Private Equity Investments in SaaS Companies Over Time
The chart below shows the number of private equity platform investments in SaaS companies by year (I excluded add-on investments). As expected, there is a steep upward trend, although it should be noted that Q1-2019 (with 15 platform acquisitions) was not on pace with Q1-2018, which had 20 platform acquisitions in the SaaS space.
Caveat – many, if not most, SaaS investments are still earlier-stage venture capital investments, which we do not track. The chart below therefore only includes platform acquisitions by private equity firms.