Even as the pandemic ravaged multiple sectors, which caused economic growth to dwindle, certain sectors have outperformed the rest of the market, including B2B SaaS. According to the latest global tech report published by Boston Consulting Group and B Capital, B2B SaaS companies have been a key driver of the global enterprise tech space since 2005, sitting way ahead of other biotech, B2C ecommerce, and other segments.
In the report, the organizations ranked top 100 technology companies founded in or after 2005 on the basis of growth in their average annual valuation. The results showed that a third of the companies belonged to the B2B SaaS space, with 75% of the lot being headquartered in the United States.
“Some of these companies — such as CrowdStrike, Cloudflare, and Okta — focus on helping businesses manage security. Others, Snowflake and Databricks, for example, offer cloud services for data, while Square and Stripe offer payment solutions, and Zoom Video Communications and Twilio have communications platforms,” the report said.
The finding highlights how B2B SaaS solutions serving a variety of areas have become an engine of growth in the global tech industry. The trend is likely to continue, with IT spending on B2B software likely to rise by nearly 4% in 2021, according to another BCG survey.
Other sectors follow closely
While B2B SaaS topped as the dominant category in the GT100 list, other segments followed closely behind. In particular, companies in consumer-oriented categories — Marketplace and B2C commerce — made up 30% of the list. However, if you look just at companies founded between 2015 and 2020, the number of orgs from this category grows to 42% while B2B SaaS comes down to 21%.
It’s also worth noting that the 100 companies on this list have seen 93% growth during the pandemic from January 2020 through June 2021. This is more than three times the overall market’s growth of 27% during the same period.
“B2B SaaS has undoubtedly been an engine of growth in the tech sector on a global scale over the past 15 years, and this report highlights its continued growth and dominance. We also welcome the continued growth of other sectors including online marketplaces, E-commerce, biotech, and fintech. This reflects the growing opportunities in enterprise software payments and digital health that we are seeing and investing in here at B Capital Group,” Rashmi Gopinath, general partner at B Capital Group, said in a statement.