SaaS B2B Companies

Part
01
of two
Part
01

Number of SaaS B2B Companies

While there is not enough publicly available data to answer your question, I was able to find a list of the top 8,777 Enterprise SaaS businesses (through Cardin Partners, a technology M&A advisory firm that tracks 25,000 enterprise SaaS businesses), of which 3,906 are in the United States. Additionally, Cardin provides an analysis of broader industry trends, such as the shift to artificial intelligence, market automation, and customer acquisition.

Below you'll find an outline of our research methodology to better understand why the information you've requested is publicly unavailable, as well as a deep dive into our findings.

METHODOLOGY

An extensive search of the public domain revealed that the data that does exist precompiled is not specific enough. Given the fact that federal statistical agencies identify industry data by the North American Industry Classification System codes, a search revealed that there is no NAICS code for SaaS companies. Any statistics from government websites would group this entire category together, including all companies that primarily offer Data Processing, Hosting, or Related Services (code 518210). Therefore, any federally-sourced statistic wouldn't be specific enough to answer the question posed.

Additionally, a rough estimate cannot be calculated, due to the fact that there isn't any data about the percentage of Data Processing, Hosting, or Related Services companies that are SaaS, B2B, or both, and no data about the percentage of B2B businesses that are also SaaS businesses.

HELPFUL FINDINGS

Though I wasn't able to find the answer to your question, I did find a technology M&A advisory firm that tracks 25,000 enterprise SaaS companies, and discloses their Global Enterprise SaaS 10k List (Cardin Partners). The list currently contains the top 8,777 enterprise SaaS businesses, of which 3,906 are in the United States, 2,335 do not have a location listed but may be in the United States (for example, Hewlett Packard, Xerox, ADP, etc.), and 2,536 are located outside of the United States. Since Enterprise Businesses are a segment of B2B Businesses, there may be more B2B SaaS companies that are not included on this list.

Additionally, Cardin does not disclose the specifics of all 25,000 Enterprise SaaS Businesses it claims to track. Of the 8,777 Enterprise SaaS Businesses it discloses, 364 are public, 6 in the process of IPO registration, 4,575 privately held, and 2,668 do not list a status.

Key global and industry trends appear to be a shift towards artificial intelligence (ex. Blueshift, Finn.ai, and Fiind), and marketing automation and customer acquisition (ex. Sales & Orders, Exponea, Tagoce, Iterable, Sendwithus, SendGrid, and SparkPost).

CONCLUSION

To conclude, despite not being able to find the number of SaaS B2B companies due to a lack of specific precompiled data, we were able to find a list of global enterprise SaaS businesses and industry trends.
Part
02
of two
Part
02

Number of SaaS B2B Companies - Series A or Later

Our research on the number of SaaS B2B companies that received Series A or later funding in the last two years revealed that SaaS companies have attracted investments totaling $30.4 billion in different rounds of funding since 2016. Reports from PitchBook platform reveals that 4,513 investors have backed SaaS companies across the different cycles. In terms of revenues, maximum investments have gone into Series B rounds that have attracted 36.8% of total investments.

FINDINGS

Our research also reveals that there were around 70 SaaS B2B companies that achieved Series A or later funding in the U.S. in 2017. The investments ranged from $2 million to $502 million. Key companies that received the funding were Magic Leap, AvidXchange, Domo, Pixvana, Uptake, Syapse, CardioLogs, Harness, Averon, Dremio Corp, Sansan, ThoughtSpot, Convoy, iguazio, newstore, Freshbooks, Lever, Stash, and Element AI. Some of the biggest investors funding SaaS B2B companies were New Enterprise Associates, 500 Startups, Accel, Bessemer Venture Partners, Salesforce Ventures, Intel Capital, Battery Ventures, Index Ventures and Andreessen Horowitz.

The full listing of the major SaaS B2B companies we compiled that have received Series A or later funding is available within the attached spreadsheet.

SUMMARY

From the earlier list, it was found that around 70 SaaS B2B companies received direct Series A and above funding. Since the return on investment from B2B SaaS companies remained comparatively strong, there were a lot of funding activities that took place for SaaS companies in 2016 and 2017. Interest areas for investors were companies dealing in automation technologies (e.g. SenseTime) and data management software (e.g. Uptake). Most of the activities were happening in the U.S. as the majority of the world's top 25 SaaS startup cities in 2017 were from the country. The maximum investments happened in Series B rounds as investors looked for companies that had stabilized their operations and were ready for next stage of growth. The highest investment was received by Magic Leap ($502 Million).
Sources
Sources