The Fastest Growing SAAS Companies In The USA

What are the fastest growing SaaS companies and why are they an attractive investment?

Many Software as a Service (SaaS) companies have recently witnessed extraordinary growth figures. According to SaaSmag.com, the top 50 SaaS companies have seen an average growth of 46.51% in the last six months. As such they have rightly become a popular investment due to providing a healthy return on capital. But why exactly are they growing and why has their popularity soared? More, importantly, will that upward movement continue? Here, we look at answering those questions as well as highlighting a number of SaaS companies that have seen unprecedented growth in recent years.

A successful and investable SaaS business model

Understanding what drives success at a SaaS company ensures that the best investments possible can be made.

A profitable SaaS company that has the potential to grow needs to have two essential properties in the very least. Firstly, it must solve a basic supply and demand problem. Any successful SaaS firm will always have a solid product that gives corporations, small businesses or individuals solutions to an issue.

Secondly, to be capable of growth, a company needs to have the liquidity to do so. For a SaaS company this means an excellent monthly recurring revenue (MRR) or a consistent annual recurring revenue (ARR) in the form of subscription fees. For investors, this definite cash flow offers peace of mind. Therefore, to be attractive to outside investment, SaaS companies not only need to have growth potential and a unique product, they need to have solid MRR and ARR too.

Will SaaS companies continue to grow?

The trend for huge growth in SaaS companies which offer valuable software as a service, looks set to continue. The reason being is that more and more businesses require innovative products to help offer a flexible way to work that provides scalability and cuts costs. Ultimately, companies will always buy into a subscription service software product if it saves them cash in the long term.

So what are the fastest growing SaaS companies?

Below, we look at five companies that have seen unparalleled growth, as reported by SaaSmag.com

Travelperk

Travelperk saw a massive 122% jump in its growth over 6 months in 2019. It’s a software that allows individuals to stay on top of their business travel by providing budgetary tools as well as easy ways to book and manage travel on its platform. The software helps businesses save money across the board on travel whilst also saving the time of its employees who don’t have to waste a moment searching for the most economical way to travel.

Importantly, in an area where there are several other travel booking companies offering time and money saving software, Travel Perk has a highly respected management team. It is made up of executives and founders who have a wealth of experience in the travel industry.

Instart Logic

Instart Logic is a software that provides companies with a method of securing their online activity while actually improving performance speeds. The result is that companies that use Instart are able to generate revenues at a better rate than ever before as their website speeds are not affected by the increase in security measures.

Well known companies use their technology, like Neiman Marcus, Kate Spade and Tui Group. It has managed to raise $140 million since its inception such is the lure of its product and capabilities as a company itself.

G2 Crowd

G2 Crowd is like the TripAdvisor for SaaS products. It compiles thousands of reviews on products so that companies can make a more informed decision when looking to purchase software as a service. It started in 2013 and most recently saw a 102% growth over a 6 month period in 2019. It has a vast database of product reviews that rate software in over 200 categories. It aims to ensure that when a company buys new software, they buy the right software for them – each and every time.

GetAccept

GetAccept has offered people in sales an efficient way of closing deals, which in turn improves rates of success. This is thanks to providing a powerful software that allows people to sign documentation online, while also giving a means to track the status of documents and deals, which helps complete sales. With almost 100 employees, it too has seen over 100% growth in 2019 thanks to its ability to streamline tiresome paperwork.

HG Data

The software offered by HG Data enables firms to analyze market data better and more efficiently. The company wanted to provide an intelligent solution that allowed businesses to hone in on suitable opportunities with greater success. The intention of the software is ultimately to aid companies to grow due to making better informed business decisions.

Fastest growing SaaS companies – the bottom line

It may be surprising to some, listing the top five fastest growing SaaS companies, to see such a diverse product mix. But that goes to the heart of the idea behind investing in SaaS companies. SaaS companies succeed when they have a product that answers an otherwise unanswered demand in the market – hence the diversity.

However, to drive growth, they will all have excellent fundamentals. They can’t just offer an innovative new product. They have to have the means to back it up. Successful SaaS companies will likely have a highly competent management team and staff as well as a fully working business model on how to expand in the future. And, of course, a solid MRR or ARR for a perpetual, positive cash flow.