500 Startups Future of SaaS Report

500 STARTUPS
THE FUTURE OF SAAS
MAY 2021
1 5 0 0 Star tups: The Future of S aaS

Table of Contents
03 Executive Summary
04 Market Overview
08 Opportunities Ahead
12 Conclusion

Executive Summary
Even amid a pandemic, venture funding in SaaS remains historically robust
SaaS VC deal activity by quarter
$16 1400
$14 1200
$12
1000
$10
800
$8
600
$6
400
$4
$2 200
$0 0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Deal value ($B) Deal count

Source: PitchBook | Geography: Global
*As of December 31, 2020
This market review provides a data-driven summary of key Key findings:

venture financing trends in the SaaS industry, concentrating on
dealmaking. Given the evolution of the SaaS space throughout • Based on estimated full-year tallies, the compound annual
the 2010s and the unprecedented acceleration in 2020 due to growth rate (CAGR) in SaaS venture funding remained
the COVID-19 pandemic, SaaS funding levels have exhibited remarkably robust over the past 10 years, exceeding 6%
surprising resilience across the board, although some nuances for aggregate VC invested and 13% for deal volume.
remain due to market factors.
• Over $48 billion was invested across 2,600+ companies
in SaaS in 2020. This value outstrips the prior high in
2019—$43.6 billion—by a considerable amount.
Methodology:
• At 15%, SaaS funding volume as a proportion of overall
All data within this report is from the PitchBook Platform.
global venture activity has hit a decade low, signifying
SaaS is defined by using the dedicated vertical within the
maturation within the space.
PitchBook Platform. Unless otherwise noted, all datasets
within this report are global. Sample sizes below 30 are
• Median VC deal sizes and valuations for SaaS companies
indicated; otherwise all underlying sample sizes should be
remain elevated across the board, suggesting significant
presumed to exceed 30.
investor appetite persists, especially for emerging
category leaders.
• Although 2020 figures are based on non-normative

sample sizes, revenues at time of funding stayed robust or
posted some growth, aligning with overall investor caution
given uncertain economic outlooks.

Market Overview
Every financing series sees new highs in 2020 The US holds steady with global metrics, by and large
Median SaaS VC deal size ($M) by series Median SaaS VC deal size ($M) by series
$70 $70
$60.0 $60.0
$60 $60
$50 $50
$40 $40 $37.5

$35.4
$30 $30
$20.0
$19.0 $20
$20
$8.5
$10 $7.5 $10
$1.8 $2.3
$0 $0.7 $0 $0.7
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Angel Seed A B C D+ Angel Seed A B C D+
Source: PitchBook | Geography: Global Source: PitchBook | Geography: US
*As of December 31, 2020 *As of December 31, 2020
SaaS exploded in the 2010s due in part to its lower total cost After record stretch of VC activity, SaaS slows during
of ownership, scalability, and accessibility. As category leaders pandemic
emerged in new key segments, incumbents also consolidated
SaaS VC deal activity with company count
gains in market share against a backdrop of steadily
increasing spending on enterprise software worldwide. Gartner $60 6,000
forecasts that $556 billion will be spent on enterprise software
alone in 2021, with public cloud services estimated to grow
$50 4,555 5,000
6.3% in 2020 to $257.9 billion.
3,986
The onset of the COVID-19 pandemic accelerated SaaS $40
4,182
4,000
adoption while showcasing the frontiers of innovation for the
space. Fueled by fledgling enterprises seeking VC backing $30 3,000
and the emergence of category leaders at the late stage,
VC funding within SaaS remained robust in 2020 even after 2,613
record-breaking tallies in 2018 and 2019. The layering of $20 2,000
business intelligence solutions across sectors for specific
units and end users has allowed the industry to advance, $10 1,000
especially when these solutions can offer a variety of features
at scale (for example, SaaS offerings for small retailers or
$0 0
dentistry practices, to name a few). The resultant influx of
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020*
data will necessitate the evolution in SaaS toolkits for multiple

niche use cases as businesses seek to generate actionable
insights. This opportunity has opened and will continue to Deal value ($B) Deal count Company count
expand entry points for new startups, leading to ongoing
venture funding within the broader SaaS ecosystem. *As of December 31, 2020

Late-stage valuations rocket into the stratosphere Pandemic-related policies accelerate valuations across
Median pre-money VC valuation ($M) by series in SaaS the board
Median pre-money VC valuation ($M) by series in SaaS
$700 $700
$617.5
$600 $600 $580.0
$500 $500
$400 $400
$300 $300
$215.0
$206.0
$200 $200
$100 $80.0 $80.0

$100
$22.0 $25.0
$7.0 $7.5
$0 $0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Seed A B C D+ Seed A B C D+
Source: PitchBook | Geography: Global Source: PitchBook | Geography: US
Financing sizes grew across many financing series, with some Companies that are raising are more lucrative than ever
of the larger absolute-value increases at later stages. Such Median revenue ($M) at time of SaaS VC deal by stage
an acceleration at even Series D or later stages speaks to the
sheer sums of dry powder on hand that investors sought to $25
disburse to fuel high growth. Valuations notched new highs $22.3
across every series, with substantial growth at the latest
stages as emerging category leaders raised massive sums to $20
seize pandemic-induced opportunities for growth.
Although diminishing financing volume indicates some $15

investor caution, the VC rounds that are closing are still
substantially priced and valued, such as e-commerce enabler
Mirakl’s $300 million funding in September 2020 or data $10
analytics suite provider Cohesity’s $250 million Series E round
in April 2020. Although early incumbents such as Alibaba
still predominate in many key categories, the proliferation of $5
custom SaaS solutions continues across not only industries $2.7
but regions, as evidenced by Mirakl and others. This has
enabled continued growth, even if slight, in investment outside $0.2
$0
the US as well. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Looking forward, such growth will likely continue in venture Angel & seed Early VC Late VC
funding across the SaaS industry. While the space overall Source: PitchBook | Geography: Global
Note: All 2020 datapoints, except at the late stage, are n < 30.

VC invested diminishes slightly as capital concentrates Volume contracts as category leaders emerge
Saas VC deals ($) as a proportion of overall VC funding SaaS VC deals (#) as a proportion of overall VC funding
25% 25%
20% 20%
15% 15%
10% 10%
5% 5%
0% 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Source: PitchBook | Geography: Global Source: PitchBook | Geography: Global
has seen its proportion of global venture funding decline, Mature businesses raise more to accelerate; the most
when analyzing total VC raised and median revenues at time youthful businesses raise more for traction
of funding, we can attribute this ebbing proportion to the
Average total VC raised ($M) in SaaS by company age
maturation of the SaaS ecosystem. As incumbents entrench
their competitive positions and further advance extant $60
$55.4
product and service suites, and as newer businesses carve
out frontier niches, capital will flow elsewhere. However, for
$50
experienced players at the nexus of SaaS and venture funding,
the proliferation of cloud services and deepening penetration
across nearly every other sector will continue to provide $40
opportunities for innovation.
$30
$20 $16.9
$10 $8.6
$6.4
$0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Within 1 year 1-3 years 3-5 years More than 5 years


Even more capital concentrates in larger rounds Volume overall tilts toward larger rounds as SaaS
SaaS VC deals ($) by size expands
SaaS VC deals (#) by size
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Under $500K $500K-$1M $1M-$5M $5M-$10M Under $500K $500K-$1M $1M-$5M $5M-$10M
$10M-$25M $25M-$100M $100M+ $10M-$25M $25M-$100M $100M+
VC investment outside the US grows slightly In time of uncertainty, the US regains slight edge in
SaaS VC deals ($) by region proportion of funding volume
Saas VC deals (#) by region
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
US Global (excluding US) US Global (excluding US)


Opportunities
Ahead
As an early stage investor, 500 Startups

has been investing in Software-as-a-Service
(SaaS) companies over the past ten years.
It has backed nearly 600 companies and counting over the past decade1
and boasts a portfolio that featured pioneer companies prior to their exits,
such as Twilio (NYSE:TWLO) and SendGrid (NYSE:SEND), and currently
includes unicorns as varied as Talkdesk (cloud contact centers), Canva
(graphic design platform), GitLab (DevOps platform), Intercom (custom
messaging platform), Lucidchart (visual workspace applications) and
Innovaccer (healthcare data platform).
500 Startups SaaS Deal Count 2010–2020 1
100%
75%
Global (excluding US)

50%
US
25%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
1. 500 Startups, SaaS Datasets, 2010 - 2020. Based on internal data as of 12/31/2020 on the entire 500 Startups family of funds. This data has not been independently verified. No representations are made
as to the accuracy or information and while reasonable steps may be taken to ensure that the
information is accurate and up-to-date, no liability can be accepted for errors or omissions.

Opportunities Ahead
With businesses shifting to the cloud, the SaaS industry has SaaS has played a notable role in 500’s portfolio from the
flourished over the past decade, leading to record funding start. As a frequent “first-check” investor, 500 saw the
and soaring late-stage valuations.2 That investment boom industry’s rising potential early on: across 500’s first five years
accelerated last year to an all-time high of $48.5 billion3 of operation, SaaS startups accounted for 28% of deal counts
seemingly due in large part to the COVID-19 pandemic, which and more than a quarter of total dollars invested.12 Those rates
created rising demand for solutions across sectors, including were well above the wider VC industry in that span, where
telemedicine, remote work, distance learning and more.4 funding and number of deals came below 20% of totals.13
With the industry evolving and investor appetite still significant,

500 is gearing up for a new phase. Startups continue to
innovate by offering custom SaaS solutions and integrating
and simplifying SaaS tools across platforms, while demand
is increasing for collaboration and productivity tools that will
underpin the future of work. As opportunities expand, 500
believes it is well positioned to participate in the continued
SaaS growth that is fueled by the next generation
of companies.
Key findings:
• Over the past decade, SaaS has been a key sector that • Despite the COVID-19 pandemic, 500’s leading SaaS
has driven top-decile fund performance. 500 has generally portfolio companies continued to make progress.
backed SaaS companies at a rate well above the wider Talkdesk8 and Canva9 raised significant late stage rounds
VC industry. It devoted 21.7% of its total funding to SaaS and saw valuations surge in 2020, while Lucidchart10 and
companies between 2010 and 2020,5 while the overall VC Innovaccer11 recently joined the unicorn club.
community deployed 15.2% during that period.6
• 500’s investments in SaaS have shifted dramatically to

regions outside the U.S. since 2010. Last year, it deployed
more than 75% of its SaaS funding outside the U.S. in
regions that have similar adoption potential.7
2. Pitchbook, Industry Brief dataset - VC Deals, 2010 - 2020. Such external data has not been verified.
4. “Cloud Spending Hits Record Amid Economic Fallout From Covid-19,” The Wall Street Journal, August 3, 2020.
https://www.wsj.com/articles/cloud-spending-hits-record-amid-economic-fallout-from-covid-19-11596494981
5. 500 Startups, SaaS Datasets, 2010 - 2020.Based on internal data as of 12/31/2020 and has not been independently verified. No representations are made as to the accuracy or information and while
reasonable steps may be taken to ensure that the information is accurate and up-to-date, no liability can be accepted for errors or omissions.
7. 500 Startups, SaaS Datasets, 2010 - 2020. See Footnote 1.
8. “Talkdesk Raises $143 Million in Series C Funding,” Press Release, Talkdesk, July 23, 2020. https://www.talkdesk.com/news-and-press/press-releases/talkdesk-raises-143-million-in-series-c-funding/
9. “Record Growth at Canva Sees New $6B Valuation,” Press Release, Canva, June 23, 2020. https://www.canva.com/newsroom/news/record-growth-canva-sees-new-6b-valuation/
10. “Lucidchart raises $52M Series D, passes $100M ARR,” Alex Wilhelm, Techcrunch, April 16, 2020. https://techcrunch.com/2020/04/16/lucidchart-raises-52m-series-d-passes-100m-arr/
11. “Healthcare’s Latest Unicorn: Big Data Startup Innovaccer Raises $105 Million At $1.3 Billion Valuation,” Alexandra Wilson, Forbes, February 24, 2021.
https://www.forbes.com/sites/alexandrawilson1/2021/02/24/healthcares-latest-unicorn-big-data-startup-innovaccer-raises-105-million-at-13-billion-valuation/?sh=4f45f3862241

In one of its earliest investments, 500 Startups participated By 2015, regions outside the U.S. began showing similar signs
in a $12 million Series B round in Twilio in 2010.14 The now of momentum with software vendors increasingly shifting
publicly-traded cloud communications platform, which sported their business models from on-premises licensed software
a recent market cap over $60 billion, acquired another 500 to the public cloud.23 That trend saw growth pick up quickly in
SaaS unicorn, SendGrid, two years ago.15 In 2011, 500 also regions such as Asia Pacific, where SaaS totaled $1.36 billion
backed Utah’s Lucidchart, a SaaS company that reportedly in revenues in 2015,24 before rising by 28.6% the following
surpassed a $1 billion valuation in 2020.16 year.25 Venture capital also grew to $4.9 billion in investments
in Asia, representing almost a doubling over 2014, while
VC appetite for SaaS was picking up by 2014, when global Europe accounted for $2.9 billion, representing a 50% increase
investments reached nearly $23 billion, a 54.7% increase over over 2014. By comparison, $20.3 billion was invested in North
the prior year.17 In parallel, 500 was ramping up activity in the America in 2015.26
sector as well, leading to a surge in funding and deal activity
between 2014 and 2017.18 That stretch saw 500 invest $49 To take advantage of the opportunity and to accelerate the
million19 in SaaS and back promising startups across different growth, a majority of 500’s SaaS funding in 2015 was deployed
industry verticals, including Talkdesk, Gitlab and Innovaccer. outside of the U.S.27 As 500 ramped up activity in Southeast
500’s SaaS funding in 2017 reached $13.5 million,20 which Asia through its 500 Durians family of funds, it invested in
exceeded the previous record amount invested in SaaS of regional SaaS companies, some that have since surpassed
$13.5M in 2015. $100 million valuations,28 including a 2014 seed round in
Singapore’s 99.co (real estate) and Indonesia’s FinAccel in
A shift also played out inside 500’s portfolio. Initially, its deal 2016 (credit risk and consumer lending). That same year,
activity was concentrated in the U.S., alongside the wider VC 500 Startups Japan backed Tokyo-based HR SaaS company
community. In 2010, 65% of the capital 500 invested in the SmartHR, which has now raised a total of $80.2 million,
SaaS space went to U.S. companies,21 while the overall VC including a $57.6 million Series C in 2019.29
industry devoted 79.7% in the U.S.22 500 soon broadened its
horizons, steadily boosting SaaS investments worldwide. That
saw 500 participate in a 2013 seed round in Australian graphic
design platform Canva.
14. “We’ve Raised $12M Series B with Bessemer, USV, and 500 Startups” Twilio, November 9, 2010. https://www.twilio.com/blog/2010/11/12m-raised-for-series-b.html
15. “Twilio to Acquire SendGrid, the Leading Email API Platform,” Press Release, Twilio. October 15, 2010. https://www.twilio.com/press/releases/twilio-to-acquire-sendgrid-the-leading-email-api-platform-2
16. “Lucidchart raises $52M Series D, passes $100M ARR,” Alex Wilhelm, TechCrunch, April 16, 2020. https://techcrunch.com/2020/04/16/lucidchart-raises-52m-series-d-passes-100m-arr/
23. “Gartner Says Worldwide Public Cloud Services Market Is Forecast to Reach $204 Billion in 2016,” Press Release, Gartner, January 25, 2016.
https://www.gartner.com/en/newsroom/press-releases/2016-01-25-gartner-says-worldwide-public-cloud-services-market-is-forecast-to-reach-204-billion-in-2016
24. “Gartner Says Public Cloud Services in Mature Asia/Pacific Forecast to Reach $8.1 Billion in 2016.” Press Release, Gartner. June 28, 2016
https://www.gartner.com/en/newsroom/press-releases/2016-06-28-gartner-says-public-cloud-services-in-mature-asia-pacific-forecast-to-reach-8-billion-in-2016
25. “Gartner Says Public Cloud Services in Mature Asia/Pacific Forecast to Reach $10 Billion in 2017.” Press Release, Gartner. Feb.1, 2017.
https://www.gartner.com/en/newsroom/press-releases/2017-02-01-gartner-says-public-cloud-services-in-mature-asia-pacific-forecast-to-reach-10-billion-in-2017
28. 500 Startups, 500 Durians Top Centaurs. https://durians.500.co/startups Date of Access: March 17, 2021.
29. SmartHR Administers $57m Series C Round – Global Corporate Venturing,” Liwen-Edison Fu, Global Corporate Venturing, July 23, 2019.
https://globalcorporateventuring.com/smarthr-administers-57m-series-c-round/

By 2018, regions outside of North America began to command Another is Canada’s Bliinx, a contact and relationship
a notable share of VC deal activity. Funding rose 69.6% management solution that aggregates online interactions
outside the U.S. to reach $17.3 billion—representing 42.1% of into Office 365 to help users find information on business
global VC investment.30 While still less than half of total VC relationships. AppBind, also from Canada, brings B2B SaaS
investments in the past two years, SaaS funding totals outside into the global reseller market of implementation consultants,
the U.S. have continued to grow.31 system integrators and distributors.
Venture funding for SaaS overall was reaching an inflection 500 has also continued focusing on emerging markets. Less
point by 2018. Later stage deals continued to proliferate, while than a quarter of its SaaS investment totals in 2020 came
valuations and deal sizes at Series D and beyond soared.32 500 from the U.S., compared to 58.6% of VC funding overall.37
portfolio companies began securing sizable late stage rounds, For example, 500 is one of the few global investors focusing
as Canva did in 2018 by raising $40 million and surpassing a on the Middle East and Africa region, where it deployed $2
$1 billion valuation.33 Recent years have also been witness to million across eight regional SaaS deals in 2020.38 Although
acceleration by category leaders. While Canva took 5 years to early, there are already signs of momentum in the region:
become a unicorn, it took less than 4 years to grow by another Saudi Arabia’s Foodics, a food industry SaaS platform that 500
15x.34 backed in 2017, raised a $20 million Series B in early 2021,39
which we believe to be a sizable round for a startup based in
The arrival of the COVID-19 pandemic appears to have only the Kingdom.
fueled momentum around SaaS, with total VC funding reaching
new heights in 2020 globally at $48.5 billion, following record Overall, as the pandemic appears to have accelerated
investments of $43.6 billion in the previous year.35 But as the momentum in the SaaS space, 2020 saw leading companies
SaaS industry shifted towards late stage VC,36 500 kept its in 500’s portfolio reach new heights. Talkdesk’s $143 million
focus on emerging opportunities in the SaaS space. Series C funding pushed its valuation above $3 billion,40 while
Canva recently announced that it raised $71 million, valuing
Startups have begun finding new entry points. That includes the company at $15 billion.41 Only a few months earlier, it had
integrating services and simplifying usage across SaaS raised $60 million at a $6 billion valuation.42 500’s investments
platforms, serving niche customer segments, and creating in emerging markets continued to see validation, such as the
custom solutions and specialized features for different BRL 310 million (approximately $56 million USD) Series D
businesses--from laundromats to law firms. 500’s recent raised by Brazil’s Olist,43 an e-commerce SaaS company that
accelerator batch companies offer salient examples of these 500 backed in 2015.
new opportunities.
One example is San Francisco-based Userpilot, which helps

software product managers personalize in-app experiences
across user journeys at scale.
33. “Canva Raises $40M Round to Earn Unicorn Title,” Press Release, Canva.” January 9, 2018. https://www.canva.com/newsroom/news/canva-raises-40m-round-earn-unicorn-title/
34. “Canva Announces USD 15 Billion Valuation; Launches Suite of Presentations Products for the Workplace,” Press Release, Canva.” April 7, 2021.
https://www.canva.com/newsroom/news/canva-announces-usd-15-billion-valuation-launches-suite-presentations-products-workplace/
39. “Startup FOODICS Raises US$20 million In Series B Funding Round Led By Sanabil Investments,” Press Release, Foodics, February 1, 2021.
http://www.foodics.com/blog/startup-foodics-raises-us20-million-in-series-b-funding-round-led-by-sanabil-investments/
40. “Talkdesk Raises $143 Million in Series C Funding,” Press Release, Talkdesk, July 23, 2020. https://www.talkdesk.com/news-and-press/press-releases/talkdesk-raises-143-million-in-series-c-funding/
41. “Canva Announces USD 15 Billion Valuation; Launches Suite of Presentations Products for the Workplace,” Press Release, Canva.” April 7, 2021.
https://www.canva.com/newsroom/news/canva-announces-usd-15-billion-valuation-launches-suite-presentations-products-workplace/
42. “Record Growth at Canva Sees New $6B Valuation,” Press Release, Canva, June 23, 2020. https://www.canva.com/newsroom/news/record-growth-canva-sees-new-6b-valuation/
43. “Olist Secures BRL 310 Million in Series D Funding Round Led by the SoftBank Latin America Fund,” Press Release, Olist, November 23, 2020.
https://lavca.org/wp-content/uploads/2020/11/23.11.20_Olist_SoftBank-converted.pdf

Conclusion
The future looks bright for SaaS. The shift to the cloud We believe this evolution should continue providing new entry
appears to be far from over, with Google estimating that the points for startups and enable growth globally and that there’s
cloud market will reach $760 billion by 2025--nearly triple the still plenty of opportunity for SaaS to blossom in emerging
size in 2020.44 “There are huge tailwinds for businesses that ecosystems. A recent uptick in SaaS investments for 500 in
are having to transform digitally and need SaaS tools and the Middle East and Africa is the latest example, while regions
functionality,” says Christine Tsai, CEO and Founding Partner such as Southeast Asia continue to produce early stage deals.
of 500 Startups. In our opinion, SaaS startups still have a role to play pushing
industries forward globally, from Saudi Arabia to São Paulo
New trends and innovations continue to shape the SaaS and beyond.
ecosystem: artificial intelligence and machine learning offer
an opportunity to boost the SaaS landscape by delivering “SaaS will rise in those markets, especially as they target
automated solutions that are faster and more personalized. enterprise customers,” says Tsai. “We see continued
As such, we believe SaaS has an opportunity to become opportunities for venture capital to fuel a new wave of SaaS
completely customizable and tailored across different sectors. innovation.
Another shift to watch is the rise of Platform-as-a-Service

(PaaS) and Infrastructure-as-a-Service (IaaS), as customers
seem to look to control more flexible software solutions
that can scale as their needs evolve. Although SaaS remains
the largest market segment, according to Gartner, PaaS is
anticipated to grow by higher margins in 2021 and 2022.45
44. “Google says Cloud Will Triple again in Next 5 Years,” Jason Lemkin, SaaStr, February 22, 2021. https://www.saastr.com/google-says-will-triple-again-in-next-5-years/
45. “Gartner Forecasts Worldwide Public Cloud End-User Spending to Grow 18% in 2021,” Press Release, Gartner, November 17, 2020.
https://www.gartner.com/en/newsroom/press-releases/2020-11-17-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-grow-18-percentin-2021
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One of the Most Active Early-Stage
Investors in the World
Our Mission
We uplift people and economies around

the world through entrepreneurship.
Since its inception in 2010, 500 Startups has invested in over 2,500 companies across 77 countries. Its
140-plus team members are located in more than 17 countries to support 500 Startups’ global portfolio.
Notable investments include Credit Karma, Canva, Talkdesk, Intercom, GitLab, Grab and Bukalapak.
10 $600M+ 19 90 22 78
years committed $1B+ valuation $100M+ valuation 5 global funds
1
countries
1 2 3 1
capital companies companies 16 thematic funds
1
invested in
& 1 annex fund
The 500 Startups team

is 100+ staff across 20
London
San Francisco Toronto
Lisbon
Silicon Valley
different countries. Istanbul Seoul Tokyo
Bahrain Bangkok
Miami Taipei
Mexico City Riyadh Dubai
We’re more than half people

Ho Chi Minh City
Kuala Singapore
Lumpur
of color and half women. People

São Paulo
Primary Geographies
Countries where
we’ve invested
$600M+1 2,450+1 802 203 784

1. Approximated as of December 31, 2020 and includes the following 500 Startups funds: Fund I, (b) Fund II, (c) Fund III, (d) Fund IV, (e) Fund V, (f) Annex, (g) Luchadores I, (h) Durians I, (i) Durians II, (j)
Mobile Collective, (k) Kimchi, (l) Korea II, (m) TukTuks, (n) TukTuks II, (o) Japan, (p) Istanbul, (q) Luchadores II, (r) Fintech, (s) Vietnam, (t) Canada*, (u) Falcons, and (v) Luchadores III. Please note that
Investment Countries
Canada’s investment period has been terminated as of December 31, 2017 and the in Committed Capital
fund will not be making any Portfolio Companies Employees
new investments.
Professionals Invested In
2. This number only includes full time employees. Based on internal estimates as of December 31, 2020. This number has not been externally verified.
3. This number includes both full time employees and contractors and is based on internal estimates as of December 31, 2020. This number has not been externally verified.


500 Startups Future of SaaS Report

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500 STARTUPS

THE FUTURE OF SAAS

1 5 0 0 Star tups: The Future of S aaS

2 5 0 0 Star tups: The Future of S aaS

Deal value ($B) Deal count

This market review provides a data-driven summary of key Key findings:

• Although 2020 figures are based on non-normative

3 5 0 0 Star tups: The Future of S aaS

$40 $40 $37.5

data will necessitate the evolution in SaaS toolkits for multiple

4 5 0 0 Star tups: The Future of S aaS

$100 $80.0 $80.0

Although diminishing financing volume indicates some $15

5 5 0 0 Star tups: The Future of S aaS

Within 1 year 1-3 years 3-5 years More than 5 years

6 5 0 0 Star tups: The Future of S aaS

US Global (excluding US) US Global (excluding US)

Source: PitchBook | Geography: Global Source: PitchBook | Geography: Global

7 5 0 0 Star tups: The Future of S aaS

As an early stage investor, 500 Startups

500 Startups SaaS Deal Count 2010–2020 1

Global (excluding US)

8 5 0 0 Star tups: The Future of S aaS

With the industry evolving and investor appetite still significant,

• 500’s investments in SaaS have shifted dramatically to

9 5 0 0 Star tups: The Future of S aaS

10 5 0 0 Star tups: The Future of S aaS

One example is San Francisco-based Userpilot, which helps

11 5 0 0 Star tups: The Future of S aaS

Another shift to watch is the rise of Platform-as-a-Service

12 5 0 0 Star tups: The Future of S aaS

Investors in the World

We uplift people and economies around

The 500 Startups team

Mexico City Riyadh Dubai

We’re more than half people

of color and half women. People

$600M+1 2,450+1 802 203 784

13 5 0 0 Star tups: The Future of S aaS

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