G2 CEO Thoughts: The State of SaaS in Europe
As we navigate a global economic downturn, every industry faces a set of challenges and opportunities.
SaaS is no exception. We've seen the headlines of hiring freezes, layoffs and poor stock market performance. But fortunately, all is not gloomy. In fact, TechCrunch recently shared a bright spot that U.S. venture capital activity in Q3 "was far from abysmal," suggesting that now might even be a great time to start a SaaS business.
Aware of the regional nuances of our industry, I was interested to hear from partners, customers, and other SaaS leaders around the world. Last month I had the chance to visit G2's London office and also speak to SaaStock in Dublin.
Euroscape Accel 2022At SaaStock in Dublin, I had the pleasure of meeting Accel Partner Philippe Botteri shortly after he and Accel Vice President Richard Kotite unveiled the Accel 2022 Euroscape. The theme of this year's report is "The Reset" - and the introduction to their analysis explains precisely why it's time to approach SaaS in Europe with a new mindset:
“On the public side, $1.6T of market capitalization was lost in the Euroscape Global Cloud Index, with average forward earnings multiples falling from 17x a year ago to 6x today . On the private side, cloud funding in Europe, Israel and the United States was down 42% in the third quarter."
Despite this much-needed reset, Accel notes that trends such as digital transformation and the move to the cloud remain strong. Additionally, while the overall decline in funding in Europe and Israel is consistent with what is happening in the United States, we have still seen major investment cycles occur over the past 12 months.
> The role of customer orientation among European SaaS winnersKnowing that it is still possible to win in a bear market, who are the Euroscape leaders who collectively raised $8 billion? And, what are the keys to their success?
One commonality they share, which I was pleased to learn, is that they are fueled by higher scores and more reviews on G2.
For context, G2 rates products and vendors based on over 1.9 million peer-reviewed reviews collected from our user community, as well as aggregated data from online sources. online and social networks. With this methodology in mind, European SaaS companies that have higher G2 scores – and therefore higher customer satisfaction – are more likely to be market leaders.
It's always been important to have happy customers, but in times like these, it's crucial to redouble your efforts to treat your customers as your most valuable marketing assets.
My takeaways and predictionsWhile SaaS investment will likely be down for at least a few quarters, we remain very optimistic about the prospects for European and global SaaS innovation and growth.
As we navigate a global economic downturn, every industry faces a set of challenges and opportunities.
SaaS is no exception. We've seen the headlines of hiring freezes, layoffs and poor stock market performance. But fortunately, all is not gloomy. In fact, TechCrunch recently shared a bright spot that U.S. venture capital activity in Q3 "was far from abysmal," suggesting that now might even be a great time to start a SaaS business.
Aware of the regional nuances of our industry, I was interested to hear from partners, customers, and other SaaS leaders around the world. Last month I had the chance to visit G2's London office and also speak to SaaStock in Dublin.
Euroscape Accel 2022At SaaStock in Dublin, I had the pleasure of meeting Accel Partner Philippe Botteri shortly after he and Accel Vice President Richard Kotite unveiled the Accel 2022 Euroscape. The theme of this year's report is "The Reset" - and the introduction to their analysis explains precisely why it's time to approach SaaS in Europe with a new mindset:
“On the public side, $1.6T of market capitalization was lost in the Euroscape Global Cloud Index, with average forward earnings multiples falling from 17x a year ago to 6x today . On the private side, cloud funding in Europe, Israel and the United States was down 42% in the third quarter."
Despite this much-needed reset, Accel notes that trends such as digital transformation and the move to the cloud remain strong. Additionally, while the overall decline in funding in Europe and Israel is consistent with what is happening in the United States, we have still seen major investment cycles occur over the past 12 months.
> The role of customer orientation among European SaaS winnersKnowing that it is still possible to win in a bear market, who are the Euroscape leaders who collectively raised $8 billion? And, what are the keys to their success?
One commonality they share, which I was pleased to learn, is that they are fueled by higher scores and more reviews on G2.
For context, G2 rates products and vendors based on over 1.9 million peer-reviewed reviews collected from our user community, as well as aggregated data from online sources. online and social networks. With this methodology in mind, European SaaS companies that have higher G2 scores – and therefore higher customer satisfaction – are more likely to be market leaders.
It's always been important to have happy customers, but in times like these, it's crucial to redouble your efforts to treat your customers as your most valuable marketing assets.
My takeaways and predictionsWhile SaaS investment will likely be down for at least a few quarters, we remain very optimistic about the prospects for European and global SaaS innovation and growth.
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