Professional Documents
Culture Documents
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Subtitle
2
Global footprint
Source: Accel 3
We love SaaS
2000 Today
Source: Accel 4
My Background
$11B(1)
Source: Accel 5
SaaS is eating Software
Reflecting a shift from legacy IT services to cloud-based services
Peak in
Global Software and SaaS revenues ($B) 2014
358
348 351
338 335
325
315 -$10B
290 296
280
271 275
255
245
230
$11B
199
210
(1)
180
106
87 +$19B
72
56
41 43
12 19
2 2 4 7 8 10
0 1 1 1
Salesforce 1999 2001 2003 2005 2007 2009 2011 2013 2015
launch
26
19 20
$11B
15(1)
6.0x
Average Since Jan 2005
4.9x
4.0x
2.0x
0.0x
05
05
08
08
09
09
10
11
14
14
15
15
16
16
c0
v0
r0
t0
l1
c1
c1
v1
r1
t1
n
ay
ar
ay
ar
n
Ju
Ap
Ap
Oc
Oc
De
De
De
No
No
Au
Au
Se
Fe
Se
Fe
Ja
Ju
Ja
Ju
Ja
Ju
M
M
M
M
Note: SaaS universe index is equally-weighted and includes the following (when each was publicly traded): ALRM, AMBR, APPF, ATHN, BCOV, BNFT, BOX, CSOD, CTCT, CVT, DMAN, DWRE, ECOM, EOPN, ET, FIVN, FLTX, HUBS,
INST, KNXA, LOGM, MB, MIME, MKTG, MKTO, MRIN, N, NEWR, NOW, OMTR, PFWD, QTWO, RALY, RNG, RNOW, RP, SFSF, SHOP, SLRY, SPSC, SQI, TLEO, TRAK, TWOU, TXTR, VEEV, WDAY, WK, XTLY, YDLE and ZEN
Source: Pacific Rest Securities | Capital IQ; depicts average EV / NTM revenue consensus estimate valuations of the SaaS universe on a weekly basis (Based on price at end of week) 8
…SaaS market is more resilient than other tech segments
120
110
100
90
80
70
60
50
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
58
2013 $1.7 B
$11B(1)
2014 $3.0 B
4 $8.6 B
$1107M
$631M
$7B $583M
$559M
$540M
$522M
$117M
$116M
$111M
$110M
$0.9B
$91M
$87M
$84M
$75M
$60M
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The number of SaaS companies created is exploding…
179
2007-2009 2013-2015
Source: Mattermark 13
… as well as SaaS funding
Funding for SaaS companies created in Europe
Base 100
220
x2
100
2007-2009 2013-2015
Source: Crunchbase 14
The next generation
• Market attractiveness
1,000+ SaaS Companies
• Differentiation
• Team
12+ countries
• Momentum (MRR, employees)
Source: Accel 15
$2.5B in Total
28 companies Funding
raised $30M +
Accel Euroscape 2016
$0.8B in 2015
Retail
Finance
Health
Productivity /
Collaboration
Data /
Analytics
Other
Developers /
Infrastructure
16
UK, France and Israel are the top 3 represented countries
Number of SaaS
X companies in Accel
4 Top 100
4
• UK, France and Israel
are the top 3
3
represented country in
3 4
our ranking with 20
20
companies each, far 2
far ahead of Germany 3 7
which has 8
companies 19
• The rest of Europe is
very fragmented 4
18
(1) Only including countries with > 1 SaaS company in the ranking 17
Marketing is dominating, Vertical SaaS is emerging
Split by category Europe vs. US
%
Marketing/Content mgmt 22
13
Sales/Lead Gen/Support 16
12
4
• Marketing is the leading
Finance
7 SaaS industry in Europe,
HR 12 followed by Sales/Lead Gen
10 Support and Developers/
Vertical 17 Infrastructure
23
Productivity/Collaboration
5 • Europe is underrepresented
9 in vertical SaaS solutions
`Data/Analytics
10
8
Developers/Infrastructure 14
18
18
Average funding in Europe is 30-40% lower than in the US
Average ARR 3 4 8 26
($M)
113
+36%
72
Average total
funding ($M)
+43% 37
+43%
19 21
+60% 11
2 5
Examples: Examples:
20
Cristal balling
• AI & ML technologies coming to age (data, algorithms, computer power)
AI & Machine
• Potential to reinvent existing workflow and make them smart
learning
• Examples: Shift Technology, Slack BOTs
• Vertical Apps have a slower refresh cycle but legacy are getting old
Vertical Apps • Few winners yet, mobile and AI opening new perspectives
• Examples: Doctolib, Metapack
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Contact: saas@accel.com
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Disclaimer
This document has been prepared by Accel Partners Management LLP (hereinafter Accel). Accel is a limited liability partnership incorporated in
England and Wales with registered number OC303424, having its registered office at 1 New Burlington Place, London, SW1. Accel is authorised
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