With a third of our portfolio consisting of Software-as-a-Service (SaaS) companies, BOOST&Co has been inspired to reflect upon our software investment journey and provide insight into why we are so passionate about this particular sector.
BOOST&Co’s SaaS investment journey
When the BOOST&Co team first started investing in software businesses roughly 15 years ago, the market was driven primarily by enterprise software organisations with licensing business models. Industry giants such as IBM, Microsoft, Oracle, and SAP were pushing out buzzwords like CRM, storage, workflow management, and systems integration. Could your SAP ERP access your Oracle database? Did your IBM SAN talk to your Cisco router?
The early 2000s witnessed a shift in the consumer space, with the launch of Xbox Live and iTunes. Radical new innovation Facebook, then Facesmash, was founded. MySpace, which enjoyed a slightly less perennial popularity, was also launched; and Google listed mid-decade.
This era saw many of our team members investing in software and supporting small, innovative software start-ups doing everything from the integration of major vendors’ products to revolutionising health care. Some of these companies met with great success, while others were bought by the giants of the space. Most are still around today. What they all have in common today, is that they are all SaaS businesses.
Expert SaaS investors
With our longstanding history of investing in software, we understand SaaS. We have so much experience with the SaaS business model and its potential for delivering high growth rates, that we can issue term sheets to SaaS companies in a week. For SaaS companies with monthly recurring revenues in excess of £100,00, we offer non-dilutive growth capital loans of £1 million to £10 million. Funds can be drawn down as a single lump sum, or in tranches.
Looking to the future – everything-as-a-service
Today, an overwhelming majority of the new opportunities we see in the software sector are SaaS-based, and we don’t expect the as-a-service model to stop there or slow down anytime soon. As SaaS companies receive higher valuations, attract more investment, and deliver results and efficiencies to clients and shareholders, we expect more industries to adopt the As-A-Service model. In fact, we have already invested in businesses with telecoms-as-a-service, research-as-a-service, and shared office space-as-a-service models. And as industry shifts towards the as-a-service model, we want to follow suit.
BOOST&Co can’t predict the future. But no matter what the next 15 years hold, we’re sure that our team will still be looking for innovative organisations to assist in their growth journey while keeping a close eye on the as-a-service model – and whatever its future replacement may be.