More capital and less business means greater investments backed by companies
Venture capital world is investing more capital in software companies as a service (SaaS), despite reducing the number of agreements it executes within the startup category, according to Crunchbase data. The results echo other risk data we have recently explored, including a review of the initial agreements that show an increase in invested risk dollars that are inversely correlated with an increase in the number of total agreements recorded.
More capital and fewer agreements mean greater investments backed by companies, which implies a general inclination towards the market of the later stage. However, instead of looking at things in stages, this afternoon we are exploring a starting category. And SaaS is a key category in the world of startups, which makes the inspection worthwhile.
As the seed investors in the world of venture capital focus more on businesses than on consumer investments, seeing that SaaS performs well is not surprising. How good this year could be.
But let's have the data in front of us before moving forward. Buckle up, we're digging in the numbers.