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Why SaaS is bucking the venture slowdown –

Like the world The start-up market takes advantage of the changing valuation environment and the investment climate, not every sector carries the same losses. One is really better than the other.

It is not the best part of the starting ground. Instead, it is a tried-and-true component of software-as-a-service (SaaS) that seems to be among the best ways to prevent a decline in private market investment.

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That startup SaaS still manages to collect the total asset content unlike other categories or types of businesses that may surprise you. After all, this column covers Q3 2021 SaaS price plateau and late 2021 SaaS sales all through endless warning signs in the segment to start 2022. Who Is the initial collection of investors still satisfied with the support?

Yes, but it does make sense, as we will explore a little more. Before I go into the numbers, note that it was more than a week ago that the Exchange asked if the SaaS selloff was over, so there is a hint that we will reach at least local when it comes to SaaS rating.

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That could keep the SaaS-positive trend going for a while, we count. However, why might SaaS companies perform better than other teams? Their boredom is now strong; their predictions are now asset. And with the SaaS rating they may have in their pool, why are investors still sitting on the dry powder diverting those who are just starting out looking for a model that has resulted in a large portion of the technology assets over the last decade?

SaaS is slow, but much smaller than its peers

As we reported yesterday, SaaS has withstood the downturn better than we expected when it comes to increased business capital.

According to Arta data, the startup of SaaS using the platform raised $ 1.04 billion in Series A deals, only 38% less than in Q4 2021 ($ 1.70 billion). In comparison, Series A investment in health technology fell 64%, from $ 1.03 billion to $ 370 million.

The decline was even less pronounced as SaaS-level-generation deals, which “only” fell by 18% a quarter. The volume of biotech seed deals fell 72% over the same period, indicating that SaaS is equally preventing the decline in a positive, partly normal way of highlighting the following.

The data is even more predictable if you take into account that there were 68 rounds of SaaS creation alone in Arta in the last quarter, down from 149 in Q4 2021. In other words, there was little dollar. although the volume was very low. agreements – considering evaluation more than raising that level.

However, it is at a later stage that we expect to see the immediate impact of the crisis on public markets. Do startup SaaS simply enjoy the grace period before the correction goes down? Maybe. But data from Silicon Valley Bank suggests that their later peers may also survive the worst effects of market change.