What does it take to break into a trillion-dollar market?

What does it take to break into a trillion-dollar market?

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Lean, agile and resilient: what it takes for startups to survive and prosper in a tough market.

Notion reveals the top 100 SaaS and Cloud companies set for an optimistic 2023, and what they need to do to succeed.

Last year, Notion’s Cloud Challengers Report revealed VC funding surpassed $500bn in the tech market, however, 2023 is showing a different outlook.

Its Top 100 B2B Software list highlights Europe’s rising SaaS and Cloud companies, including 2022 ProcureTech100 pioneers like Procuros.

Where is VC tech funding headed?

Whilst reaching funding peaks in 2022, Notion confirms large amounts of VC funding were raised but not deployed. This links back to talks of ‘dry powder’ build up.

Key attributes of quality

What makes an investment-worthy Cloud/SaaS startup? According to Jos White, General Partner at Notion VC:

  1. Category leader
  2. True innovation
  3. Founder track record
  4. Strong growth/metrics/efficiencies
  5. Value prop/RIO – speed and evidence ‘non-discretionary’

The report continues by highlighting the 100 SaaS and Cloud companies that have the strength and resilience to succeed no matter the market conditions.

The top 3 startup regions in Europe revealed 73% of deal flows came from the UK, Germany and France.

Most of the technologies in the B2B Software 100 rely on:

  • API connections
  • Automation
  • Big Data

This suggests tech innovation will focus on efficiency fed by large data lakes and AI in 2023. Moreover, Cloud and SaaS technology filters into categories like healthcare, supply chain, data science and productivity tools, with finance, compliance and DevOps making up 50% of categories seeing new digital products.

Cloud technology is expected to take a 70% market share of a trillion-dollar market by 2027, where it currently grows by more than 20% each year.

‘Companies will need to be leaner and more resilient if they are to survive and prosper’
Jos White, General Partner at Notion Capital
What next for Cloud and Tech?

2022 funding trends will be mirrored in 2023, where investment slowed down. However, there is still much optimism for the year ahead in spite of a predicted recession. It turns out it’s a great time to build a company! Costs are down and more talent is available, especially as tech companies continue to adopt remote and hybrid working models. White states that even though funding rounds will be smaller and at lower valuations than the last couple of years, ‘Investors still want to see growth but would rather see 2x growth with efficiency as opposed to 3x growth with high burn.’

Digital is set for another adrenaline rush of a year!

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