How Many SaaS Companies Are There in the World and Where They Spend Their Money

July 20, 2022
10 min

The two pillars of running a successful SaaS business are thoughtful budgeting of operational expenses and capital raising.

But how can you make sure that your Saas funding amounts and expenditures are in line with other peers at your scale?

This and many other questions are fully covered in this post.

So, if you are in the SaaS space as an investor, executive, or decision-maker, sit back and keep reading to find out the core SaaS statistics on:

  • The number of saas companies by region
  • How SaaS companies are raising capital and SaaS funding amounts
  • B2b SaaS marketing budget and other channels
  • Core operational expenses of SaaS companies across departments.

The Number of SaaS Companies | SaaS Statistics 2022

The number of SaaS companies in the world in 2021 is about 25,000, according to a Statista report on SaaS organizations by country (Source). More than that, there are nearly 7,000 SaaS companies in the marketing space alone.

According to BusinessWire, in 2021, the world’s SaaS market size is estimated to be $272.49 billion (Source). The SaaS industry growth rate is approximately 11.7% (CAGR), meaning that the global SaaS market size will hit $307.3 billion by 2026 (Source).

According to Statista, the overall SaaS market is expected to continue growing, as organizations around the world adopt SaaS solutions for a variety of business functions. Among these are solutions for customer relationship management (CRM), enterprise resource planning (ERP), as well as webhosting, and eCommerce.

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The number of SaaS companies in the US far exceeds other areas, with more than 15,000 SaaS organizations up to date, as tracked by Statista. The US SaaS market size was estimated at a whopping $145.5 billion in 2021, represented by such renowned moguls as Microsoft, Adobe, Salesforce, and others.

The two other prospective SaaS markets are the United Kingdom and India. There are 2,000 and 813 SaaS companies in the UK and India respectively.

Accordingly, the top countries for SaaS companies are the US (15,000) and the UK (2,000), followed by Canada (1,000), Germany (1,000), France (939), India (813), and China (663), according to Statista.

The Indian SaaS market size was valued at around $3.5 billion in 2020. The market is further projected to grow at a CAGR of 27% over the period of 2022-2027 to attain $15 billion by 2026, as specified by Business Today (Source).

China enterprise SaaS market size stands at 53.8 billion yuan, or 8,5 billion USD, and is expected to grow at a CAGR of 34% in the next 3 years, according to I-Research China (Source).

For more geographics and industry insights, check the complete SaaS Market Overview with statistics, trends, & top companies.

As Better Cloud states, the percentage of SaaS out of total company software use is up to 70%. It is projected that 85% of software used by organizations will be SaaS by 2025 (Source).

Chief Marketing Technologist mentions that businesses with fewer than 100 employees use an average of 102 SaaS applications. Meanwhile, the average number of SaaS applications for companies with 101-1,000 employees is 185 – an 87 % increase. This number almost doubles for organizations with 1,000+ employees – 288 applications (Source).

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The percentage of companies using SaaS to meet their software needs is steadily increasing, with only 38% of companies relying on SaaS in 2016 and 51% in 2018. The percentage of companies relying solely on SaaS is projected to hit 80% in 2022, according to BlueTree (Source).

According to SaaStr, there are about 337 unicorns and 15 decacorns in the SaaS/Cloud market, each worth $3.39 billion on average. The numbers of SaaS/Cloud unicorns and decacorns are estimated to reach 1000 and 50 respectively in 2022 (Source).

SaaStr concluded that SaaS companies have an average of 36,000 customers. This number can hit 85,000 for public SaaS companies that mainly sell to SMBs ( – 128,000 customers, HubSpot – 114,000 customers, – 109,000 customers) (Source).


The Biggest SaaS Companies by Customers Number
Averages36,161$501,200,000 $69,118
average < $10k ACV84,833$391,111,111$4,858
average $10k-$100k ACV13,523$572,500,000 $40,270
average $100k+ ACV1,709$395,000,000 $220,172

How SaaS Companies Are Raising Capital and SaaS Funding Amounts

As businesses shift to the cloud, SaaS funding amounts have picked up the pace over the past decade, leading to record-breaking $48.5 billion of total investment across 2,600+ companies in 2020 (against the previous all-time high of $43.6 billion raised in 2019), according to Pitchbook.

The total capital raised for SaaS in Q1 of 2021 exceeded $9.9 billion distributed amongst 414 organizations worldwide.

Such an investment boom was seemingly due to the onset of Covid-19, rising demand for innovative cloud-based approaches across sectors, including:

  • remote work
  • telehealth
  • e-learning
  • and more.


Fueled by the Covid-19-driven need for innovation on the one hand, SaaS capital raising breaks the record due to a set of benefits SaaS solutions can bring to businesses on the other hand:

  • Scalability (let’s say SaaS offerings for small retailers)
  • Lower costs (as compared to enterprise software)
  • Reduced time to benefit (SaaS solutions are ready to use, so adopters don’t need to configure them from scratch)
  • Upgrades (providers keep their SaaS offerings up to date automatically)
  • Easy to use (SaaS solutions are built on baked-in best practices, meaning that users won’t spend ages on learning endless tutorials).

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The Covid-19-accelerated demand and the range of SaaS advantages open even more entry points for new SaaS startups, raising significant funding amounts across various investment sources.

To draw a clear picture of how SaaS companies are raising capital and how SaaS funding amounts are distributed, we’ve analyzed a range of trustworthy sources and thought leaders, including but not limited to, Statista, and 500 Global, and broke up all funding information into blocks according to funding source / stage / geography (Q1 of 2021).

Here’s what we’ve found.


SaaS Pre-Seed Funding Amounts

In the first quarter of 2021 (January, February, and March) 40 SaaS startups raised pre-seed capital accounting for $8.8 million. The biggest Saas funding amounts at the pre-seed stage are $1,7 and $1,2 million distributed between the Germany-based Levity and the Denmark-based Oveo.

As shown in the chart below, 5 out of 10 SaaS companies are headquartered in the US pointing out the country’s predominance in the total capital raised by SaaS.


SaaS Companies Pre-Seed Funding Amounts in Q1 of 2021
SaaS CompaniesFundingCountry
Ssenvia$10,00,000.00United States
ZEDA.IO$4,50,000.00United States
HIRIO$4,00,000.00United States
Abstract$3,50,000.00United States
BuildForce$3,00,000.00United States


SaaS Seed Funding Amounts

The number of SaaS companies that raised capital at the seed stage is 115, with more than half of them accumulating funds worth $1 million and above. Paired with the individual investments, the overall SaaS Seed funding amount landed at a whopping $174 million.

The US-based Trace, a workflows and analytics provider, outreached its peers, touching $8,3 million led by Greylock and Uncork Capital.


SaaS Companies Seed Funding Amounts in Q1 of 2021
SaaS CompaniesFundingCountry
Trace$8,300,000United States
XGen$7,500,000United States$7,000,000Israel
Accord$6,000,000United States
Datajoy$6,000,000United States
CloudNatix$4,500,000United States
Calixa$4,250,000United States


SaaS Series A, B, C Funding Amounts

A total of $3,3 billion was raised by 124 SaaS companies across the A, B, C funding rounds, with almost $1.5 billion coming from round C alone. 68 startups raised $752 million in Series A, and 29 companies reached just over $1 billion in Series B.

The US plays the key role in raising capital for SaaS, as 96 out of 124 companies are from the States.


SaaS Series A Funding Amounts in Q1 of 2021
SaaS CompaniesFundingCountry
Vendr$6,00,00,000.00United States
Fabric$4,30,00,000.00United States
Setsail$2,60,00,000.00United States
AgentSync$2,50,00,000.00United States


SaaS Series B Funding Amounts in Q1 of 2021
SaaS CompaniesFundingCountry
Quantum Metric$20,00,00,000.00United States
GRO$8,50,00,000.00United States
Seekout$6,50,00,000.00United States
Emotive$5,00,00,000.00United States


SaaS Series C Funding Amounts in Q1 of 2021
SaaS CompaniesFundingCountry
HighRadius$30,00,00,000.00United States
Papaya Global$10,00,00,000.00United States
Built$8,80,00,000.00United States
Harness$8,50,00,000.00United States


Raising Capital for SaaS by Region

Speaking geographically, the ultimate leader in raising funds for SaaS is the North American (NA) region, standing at a staggering $7.8 billion (or 79% of the total investment!), followed by Europe and Latin America (about 10% each), according to the SaaS Funding Report (JFM 2021).

The Asia Pacific (APAC) attracted $331 million, placing the region at 4th place on the list. The Middle East accounts for only a fraction of total capital raised for SaaS globally worth about $193 million.


SaaS Funding Amounts by Region

SaaS Funding Amounts by Region


How Much Do SaaS Companies Spend on Marketing, Sales, and Other Channels?

If you’re a SaaS founder / executive, you most probably want to keep track of how your peers distribute their Saas budget, especially their Research and Development & Sales and Marketing spend. And it’s perfectly fine! The more insights into these metrics you get, the bigger your chances are to be in line with the market and stay competitive.

With this in mind, we analyzed hundreds of SaaS companies (B2B) and a range of key benchmarks from SaaS Capital, SaaS LiveKBCM Technology GroupGartner to get a deeper dive into the Saas budget and how it is distributed across various departments, including Sales, Marketing, Research & Development, Customer Support, and General & Administrative.

The key metrics we focused on while doing this research are:

  • Company funding type (bootstrapped / equity-backed)
  • Company growth
  • Annual Recurring Revenue (ARR).


SaaS Sales and Marketing Spend

Historically, the SaaS budget is poured into Sales and Marketing accounting for 27% of ARR (S&M) rather than Research and Development (R&D).

If paired up with Customer Support, which accounts for renewals, upsells, and cross-sells, B2B SaaS Sales & Marketing budget can outreach a whopping 50% of a company’s annual revenue, whereas S&M budgets and Marketing budgets alone across other industries are not likely to exceed 10%, according to David Tashjian at Incredo.

More than that, while the world’s Marketing spending continues to shrink, landing at 6.4% in 2020 (against 11% in 2019), according to Gartner, Saas company marketing channels budget stays solid (10%).

Such a difference in budgeting is due to the nature of the SaaS industry pushing companies to acquire recurring revenue and pay off the money spent on customer acquisition.

Let’s take a look at how much SaaS companies spend on marketing and sales:

  • Zoom: spends close to 19% of its annual revenue on S&M efforts
  • Twilio: spends close to 27% of its annual revenue on S&M efforts
  • Wix: spends close to 40% of its annual revenue on S&M efforts
  • Dropbox: spends close to 19% of its annual revenue on S&M efforts
  • Smartsheet: spends close to 50% of its annual revenue on S&M efforts.


What is more, Saas Sales and Marketing spend peaks when companies reach €1-€10 million in revenue and start building their sales process and rapidly expanding their sales and marketing teams.


SaaS Sales and Marketing Spend 

SaaS Sales and Marketing Spend | Source: 2020 European SaaS Benchmark by Serena


As shown by these statistics, SaaS sales and marketing spending varies across companies and depends on your products, services, talent resources, and revenue. Budgets vary, but a safe estimate for a SaaS company to spend on S&M efforts should be anywhere from 10% to 40% of your ARR.


SaaS Research and Development Spend

In general, the smaller a SaaS business is, the more percentage of revenue it should pour into R&D, according to the 2020 European SaaS Benchmark by Serena. This means that a SaaS startup should first invest in the quality and functionality of its products to guarantee their competitiveness in the market.

Younger businesses spend 30%-60% on R&D, while this percentage inevitably drops once a company reaches €10 million in revenue (European SaaS market).


SaaS Budget on Research and Development

SaaS Budget on Research and Development | Source: 2020 European SaaS Benchmark by Serena


However, there is no one-fit-all strategy for all SaaS budgets. Just to illustrate, Slack, whose revenue in 2016 stood at $105 million, spent 59% of revenue on R&D. Here is what they say:

To remain competitive, we must continue to develop new features, integrations, capabilities, and enhancements to Slack… Our failure to maintain adequate R&D resources or to compete effectively with the R&D programs of our competitors would give an advantage to such competitors and may harm our business, results of operations, and financial condition.

- Slack

This statistic makes it possible to break all SaaS companies into 2 categories – product-driven and sales-driven.

That said, while there are a lot of budgeting practices across the SaaS market, you always need to consider your goals, resources, and product / service specifics to adjust your spending accordingly.


SaaS Budget by Funding Source

Key findings:

  • Bootstrapped companies spend less while staying profitable; equity-backed companies often operate at a loss due to the constant pressure to acquire recurring revenue
  • B2B SaaS budget on marketing, R&D, and General and Administrative activities of equity-backed companies are 40% higher; they also spend 82% more on sales efforts
  • The difference in General and Administrative costs is most likely motivated by the need for equity-backed companies to maintain a robust reporting system for investors.


SaaS Budget by Funding Source

SaaS Budget by Funding Source | Source: SaaS Capital


SaaS Spend by Growth

Key findings:

  • Higher growth bootstrapped companies spend 25% less on the cost of goods sold (CoGS) and 50% more on marketing
  • Higher growth equity-backed companies spend about 30% more on sales and approximately 55% as much on marketing compared to lower growth equity-backed organizations. The expenditure on general and administrative efforts within higher growth equity-backed companies is 10% less.


How Much Do SaaS Companies Spend on Marketing, Sales, and Other Channels Based on Company Growth

How Much Do SaaS Companies Spend on Marketing, Sales, and Other Channels Based on Company Growth | Source: SaaS Capital

Why Ascendix as Your SaaS Partner?

The future looks bright for SaaS. The shift to the cloud appears to be far from over, opening even more entry points for new SaaS startups to shake up the industry. If you’re already in the SaaS space or just want to enter it, you’ve come to the right place!

As the SaaS statistics above illustrate, Sales & Marketing activities play a key role in the SaaS business success, especially if your company has already reached several million in revenue. So, it’s wise to pour most of your resources into S&M efforts while delegating Research & Development to a trustworthy partner, like Ascendix.

Why choose us? Because our SaaS product development services will help you:

  • Cut your development costs thanks to our flexible engagement models, involving the top IT talents from Europe and the US
  • Take care of all product-related processes, from research and discovery to MVP development, final release, and market launch 
  • Bring robust Big Data Analytics to keep track of all your datasets
  • Provide 24/7 Support of your software products around the globe and more!


Not sure yet? Click on contact us and check our case studies. Let’s skyrocket your SaaS business together!

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What Are the Sources of Raising Capital for SaaS?

The main sources of raising capital for SaaS include Pre-Seed Funding ($8.8 million raised by 40 SaaS startups in Q1 of 2021), Seed Funding ($174 million raised by 115 companies), Venture capital ($3,3 billion raised by 124 SaaS companies across the A, B, C Series), as well as Angel Investing, Venture Debt, and others.

What is B2B SaaS Marketing Budget?

The median B2B SaaS marketing budget spent on marketing is 10% of annual recurring revenue, states SaaS Capital. 

What is SaaS Sales and Marketing Spend?

SaaS Sales and Marketing spend stands at 27% of annual recurring revenue, going up to 40% for Wix and 50% for Smartsheet.


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