Mobile apps and SaaS verticals are common themes in our ten companies to watch next year
Mobile apps and SaaS verticals are common themes in our ten companies to watch next year
Software investment dominates the venture capital market. Over the past decade, tech companies have received nearly half of all venture capital invested in North American companies. Even as this years’ equity market has been hard on tech companies, thousands are still in the market looking to raise capital. A sample of these companies were singled out by our actionability-signal model as candidates especially poised to raise capital over the next six months.
In an earlier post, we discussed some factors that play into this. Specifically, when a company was founded, how much capital it raised, and the stage of its last funding round. In short, growth-stage companies started between five and seven years ago that have already raised considerable capital were primed to return to market.
Growing companies need cash to scale up and acquire talent. As they gain market traction the capital need grows exponentially, not linearly. In the context of actionability signals, two key indicators for that growth were employee growth and the time since last deal.
Human capital is a vital and expensive investment. This is only more apparent in tech where talent is at a premium. As companies grow and add headcount, cash burn is high and a follow-on funding round will be needed, often sooner than expected.
Here are ten companies to watch. Mobile apps and software-as-a-service (SaaS) verticals are common themes. Also, commitments from key investors like Andreessen Horowitz, Tiger Global Management, and Bain should give a vote of confidence to future funding.
