Huge potential for SaaS in the current landscape

While software-as-a-service, or SaaS, businesses aren’t usually considered a pivotal part of the success of the British tech landscape, the sector is showing to have had a significant impact on the tech space, encompassing 9.3% of the 34,815 high-growth businesses in the UK.

In other words, the average startup in the UK is in some way based on SaaS.

Particularly in recent years and with the start of the pandemic in March 2020, SaaS has been at the frontline of investors’ attention, as the need for swift solutions in response the unexpected and new way of working highlighted the creative potential of this industry.

Yet despite the huge role that the SaaS industry plays in our economy’s growth and innovation, they don’t seem to be receiving the attention they deserve from Government and regulators.

While there are several reasons for this, one of the most significant is in the way in which SaaS companies are categorised.

Since SaaS businesses often operate through existing sectors, the sector of SaaS in itself has struggled to define its own space, and resultingly, aggregate statistics about the SaaS sector don’t pick up on the contributions which the sector has made through any comprehensive analyses into its individual achievements and breakthroughs.

However, this isn’t putting a damper on the industry, as SaaS companies and startups continue to thrive in their ability to be flexible and adaptable, generating more ways for people and businesses to be more efficient in their work.

Companies haven’t stopped challenging the traditional ways of adjusting to a novel work environment, by developing innovative software and tools, boosting efficiencies and adaptive ways of working for businesses, consumers and the public sector.

Of the 3,1898 SaaS companies traced by Beauhurst, nearly 40% have benefitted as a result of the pandemic, simply due to the sector’s capacity to adapt and prosper in the face of challenging and drastically changing situations.

With the dampening of lockdown measures over the past year, many businesses have returned to work at the office.

Yet regardless of this shift, the idea of flexibility in the workplace with the ability to work from home has been embraced into our lifestyles, ultimately providing the SaaS industry with the capacity to run free with innovation.

Alongside this, businesses and public sectors are seeing increasing developments in business models leaning towards a cloud-first strategy, fuel to the SaaS growth fire.

Cloud-based approaches have continued to demonstrate their required flexibility, scalability and data security, factors which have been essential to the move from office to home working, and which have grabbed the attention of investors.

A recent Coadec survey illustrates this fact, as it found that 52% of VC investors are focusing on SaaS startups, a hugely exciting stat for SaaS businesses on their growth journey.

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