Investing in SaaS Companies

Jul 7, 2006 by Sinclair Schuller

Many, many (and many more) self-identifying SaaS companies are tackling horizontals in the software market that have generally been considered “old news” (such as CRM). A couple of years ago (or last year for that matter), if you asked an investor whether ERP companies were growth investments, they would laugh and ask if it was April 1st.

Lately, however, companies that build ERP applications have been bucking this trend through SaaS, but why? Why are formerly boring topics now hot? Mainly because SaaS is a reorganization of thought that leads to massive savings for customers. There was an article today on Motley Fool about how SaaS is a reinvention of what used to be stagnant. As investment continues to focus on SaaS based companies, everyone will see an acceleration far surpassing the current SaaS environment. Oh how sweet it is…

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