Canadian tech companies are a “sassy” lot and a new report goes to show that investment from around the globe has been channeling billions toward supporting that statement.
By that, we mean “SaaS”, or “Software as a Service” and Canadian developers of this market have seen $5.13 billion this year, an immense $3.5 billion increase from 2018’s $1.62 billion.
This data comes via the latest report from L-Spark in its 2019 State of SaaS: The Canadian SaaS Landscape.
What is SaaS?
SaaS is a software distribution model where a third-party provider hosts applications and makes them available to customers over the internet. The aim is to make life easier for companies by taking some of the “operating burden” off their shoulders. This includes email, sales management, customer relationship management, financial management, human resource management, billing and collaboration. Some of the most popular SaaS names out there include: Microsoft Corp. (NASDAQ: MSFT) , Salesforce Inc. (NYSE: CRM) and Oracle Corp. (NYSE: ORCL).
(Image via L-Spark report.)
Top SaaS companies:
Lightspeed (TSX: LSPD) - Based out of Montréal, this cloud-based commerce platform powers small and medium-sized businesses in more than 100 countries. LSPD made its TSX debut in March of this year and was named the Canadian Innovation Exchange (CIX) 2019 Innovator of the Year. Its CEO Dax Dasilva was also named The Globe and Mail Innovator of the Year.
Trulioo - A leading global identity verification provider, it was named to research firm Reg Tech’s Top 100 List for the third year in a row in November 2019. Trulioo had a successful year, which saw its EmbedID, coverage introduced to four new countries, including Iceland, Bahrain, Georgia and Qatar. The Vancouver, BC-based company also secured $60 million in Series C funding.
Cilo - Also headquartered in Vancouver, this cloud-based legal technology company offer solutions for lawyers such as legal practice management, client intake and legal CRM software. Cilo recently launched a new app and dashboard services.
(Trulioo logo.)
See also:
TIMIA Capital Corporation (TSX-V: TCA) - This a specialty finance company that provides growth capital to technology companies in exchange for payments based on monthly revenue. TIMIA recently released its Q3 2019 financial results, posting record revenue of $884,231, up 121% over the same period last year.
Provincial breakdown:
(Image via L-Spark report.)
Ontario led SaaS investments for the second year in a row at $1.78 billion. British Columbia clocked in at a very close second with $1.23 billion, even with closing 56 fewer deals than Ontario.
Top Deals:
- Ontario: 99 deals - $1.78 billion
- BC: 43 deals - $1.23 billion
- Québec: 26 deals - $756.6 million
- Alberta: 16 deals - $870 million
Investment conclusion:
The global SaaS market is forecast to be worth an estimated $100 billion in the next year. Many investors probably utilize this service without even fully realizing what does. Have you put any dollars toward this type of tech? Let us know in the comments below.