Battery Ventures, a leading global investment firm, has completed two new investments totaling 150 million in Chargify and SaaSOptics. These companies manage billing and finance for sales of software products and services (SaaS), and have a combined customer base of 2,000.
With extensive experience in fintech investments for companies in growth phases, this move will help accelerate the adoption of cloud-based applications among chief financial officers (CFOs) and other corporate customers. The acquisition is also expected to spur growth for both Chargify and SaaSOptics, and provide the cash infusion necessary for Battery to make new investments in its core product.
Founded in 2006, Chargify is a subscription management platform that helps recurring revenue businesses automate and streamline their billing, invoicing, and payments processes. The company’s software-as-a-service (SaaS) solution is used by more than 1,000 customers, including market-leading brands such as Shopify, SendGrid, and New Relic.
SaaSOptics, founded in 2013, is a finance automation platform that helps subscription businesses automate and streamline their revenue recognition, analytics, and credits and collections processes. The company’s SaaS solution is used by more than 1,000 customers, including industry-leading brands such as Zuora, HubSpot, and Autodesk.
With the acquisition of Chargify and SaaSOptics, Battery Ventures now has a significant presence in the fast-growing market for SaaS management solutions. The two companies will continue to operate independently, with their own management teams and product roadmaps.
Battery Ventures has a long history of investment in SaaS and cloud companies. Notable previous investments in the space include BrightCI (acquired by Atlassian), CloudBees (IPO), CloudLock (acquired by Cisco), Cvent (IPO), LogMeIn (IPO), MarginCall (acquired by Blackstone), sendgrid (acquired by Twilio), and Work Market (acquired by ADP).
In addition to its investment in Chargify and SaaSOptics, Battery has also invested in a number of other companies that provides solutions for the SaaS market, including AppDirect, Axiom, Doximity, G2 Crowd, Greenhouse Software, Heap, Hootsuite, InsideView, Intercom, Jitterbit, Lionbridge Technologies, MeisterLabs, New Relic, Optify (acquired by Marketo), SendGrid, ServiceMax, Smartsheet, Tanium, and Workday.
What is SaaS?
SaaS is a software as a service subscription model in which a user pays a monthly or annual fee to access and use a software application. The advantage of SaaS over the traditional software licensing model is that it eliminates the need for upfront investment in hardware and software, and allows for a pay-as-you-go pricing model that can be more easily scaled to meet the needs of the user.
SaaS applications are typically delivered through a web browser, and can be accessed from any location with an internet connection. Because SaaS applications are hosted in the cloud, they can be quickly deployed and do not require the same level of IT support as on-premises software.
The SaaS market is growing rapidly, as more businesses move away from the traditional software licensing model in favor of the flexibility and scalability of the SaaS model. According to Gartner, the global SaaS market is expected to grow from $46.3 billion in 2016 to $85.1 billion by 2020, at a compound annual growth rate (CAGR) of 15.5%.
Battery Ventures’ investment in Chargify and SaaSOptics is a strong vote of confidence in the future of the SaaS market. These companies provide critical software solutions that help subscription businesses automate and streamline their billing, invoicing, and payments processes. With the acquisition of these two companies, Battery Ventures now has a significant presence in the fast-growing market for SaaS management solutions.