SaaS solutions are emerging faster than ever due to the unprecedented challenges the world is facing.
Indeed, since March 2020, the sector’s incredible potential has been discovered by investors, as the problems around Covid-19 required solutions.
Software and SaaS solutions continue to play a growing role in extracting insights, managing permissions, and bringing together systems in a secure way.
In 2020, Public Health England lost around 16,000 coronavirus records because it was using an old version of Microsoft Excel.
Incidents like this show the necessity to find robust solutions for managing data and how more investment in software could improve the work of governments everywhere.
Highlighting the explosive growth oi the sector, between 2011 and 2021, the number of SaaS companies in the high-growth ecosystem increased by 282%.
SaaS businesses have taken a phenomenal £11.8bn of equity investment in the decade between 2011 and 2021.
The sector accounts for 9.3% of the UK’s 24,815 high-growth businesses, meaning that the average start-up is SaaS-based.
Moreover, the perpetual interest and innovation in the SaaS industry are demonstrated by the number of young high potential companies launching very frequently. Out of 3,237 companies, 2,573 have secured equity.
Beauhurst data shows that the SaaS model is being applied to more niche and specialised areas than ever before and is on the right path to highly benefit the private and public sectors.
For instance, Lilli is helping to facilitate independent living for elderly and more vulnerable people by monitoring patterns of life within the home such as the use of appliances to improve their quality of life. The company has raised £10m over four funding rounds.
This technology will be immensely beneficial in the future, assisting the government in finding ways to reduce the costs of a growing population.
Out of 3,237 active ambitious UK companies currently operating in the SaaS space, nearly 40% are at the seed stage, offering a promising pipeline of opportunities for investors and innovative services for private and public sector customers in the years to come.
Also, SaaS activities are diversifying and are looking to grow even more outside the capital that currently welcomes 51% of active high-growth SaaS companies’ headquarters.
Prominent clusters welcoming SaaS businesses include Edinburgh, Manchester, and Bristol.
An increase in interest, investments and the growing regional diversity in the sector will help to ensure that a new generation of UK SaaS companies receive funding.