Software as a service (SaaS) is integral to daily life. It's a simple concept: It's the applications and software used over the internet that do not require installation and are accessible anywhere through the cloud.
From streaming services to productivity tools, SaaS businesses provide valuable solutions to myriad problems. They're also a huge part of the global economy. The SaaS market reached more than $193 billion in 2022 and is projected to grow at a compound annual growth rate of 16.47% culminating in a more than $482 billion market size by 2028, according to U.K.-based Market Reports World.
Growth has made SaaS a compelling investment opportunity. SaaS businesses typically generate predictable, recurring revenue streams, making them less susceptible to economic downturns than other types of businesses. Additionally, SaaS businesses often have high margins because they do not incur the same costs as traditional businesses, such as production and inventory.
For years, many investors wanted ways to expose some of their portfolios to online businesses, including SaaS players, but did not have an easy way to gain access. The founders of the investment platform WebStreet created a new asset class to give investors access to a range of online opportunities, including opportunities with SaaS firms.
WebStreet, which offers SaaS investment assets as part of its investment portfolio, is an investment platform that offers diversification through cash-flowing online sites and Amazon storefronts. The founding team created a new asset class that is ideal for passive investors who want access to potentially outsized returns.
SaaS businesses offer a compelling investment opportunity because of their predictable recurring revenue streams, high margins, scalability and strong growth potential. Customers typically pay monthly or annual subscriptions for access to SaaS products. This provides the business with steady cash flow that can often weather economic or market turbulence.
SaaS businesses also do not incur capital costs that come with manufacturing, warehousing and inventory, which can provide them with higher profit margins. Scaling is simple with SaaS products, so customers can reach global users quickly, allowing them to capitalize on growth and additional revenue. As SaaS products become increasingly essential for businesses of all sizes, the industry should see continued year-over-year growth.
WebStreet offers investors several ways to invest in SaaS assets:
- Fractional ownership in SaaS businesses, allowing investors to gain exposure to the SaaS industry without having to invest a large amount of capital
- Debt financing for SaaS businesses to give these companies capital to fuel growth
- SaaS investment funds that put money toward a portfolio of SaaS businesses to provide diversified exposure
SaaS investment assets give savvy investors access to a growing and stable industry that will see massive year-over-year growth. WebStreet offers a variety of SaaS investment assets to meet the needs of different investors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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