Canada Emerging as Strong Market for SaaS Companies

The default area when thinking of software as a service (SaaS) start-ups is surely Silicon Valley, and rightfully so, according to the experts at Venture Computers. With Box and Dropbox, as well as and NetSuite on their resume, Silicon Valley deserves to be at the top of everyone’s mind when discussing anything tech. But other SaaS markets do exist, and one shouldn’t be surprised that Canada is leading the trail as the next SaaS hotbed.

Similar to Silicon Valley, some highly successful start-ups have come out of Canada. Hootsuite and Shopify both got their starts in Canada and both currently have evaluations in or around the billion-dollar range. Also add FreshBooks, Taleo, and Radian6 to the list of Canadian SaaS start-ups that have enjoyed recent financial success. It’s easy to see why Canada is making a serious mark in the SaaS market.

What has contributed to the monetary success of these companies is the sales model. An on-the-ground sales force is no longer necessary for SaaS start-ups to acquire corporate clients; now, small- and medium-sized businesses can be targeted online or even through telesales. And with the emergence of cloud storage in Canada opening entirely new opportunities to the industry, many SaaS companies are reaping the benefits.

One variable that can be looked at from either perspective in regards to its impact on SaaS companies in Canada is the lack of early-stage funding. While funding at the initial stages for tech start-ups in Canada is certainly hard to come by—and much lower than our U.S. counterparts—this has forced SaaS and other tech companies to become much more focused and diligent with their products. Knowing that concepts need to be much more thought out before investors will be willing to take the risk has created a standard that is reflected in the success witnessed today.

We at Venture Computers are fortunate to be operating out of Canada. Though we wouldn’t categorize ourselves as a primarily SaaS company, we do offer cloud hosting in Canada, along with other software services that put us in that space. We would like to think that we are part of the emerging group of Canadian leaders within the tech industry that are poised to make an impact.

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