Fast growing software companies are connecting to become the largest export sector
Software as a service could become an even bigger part of the economy, according to Clare Capital founder Mark Clare.
The rapidly growing software as a service industry joins a community-building initiative as it seeks to grow further and become the country’s largest export sector.
Callaghan Innovation is launching what it calls the kiwiSaaS community to connect those who work in the sector. The initiative includes a series of workshops, events and an online community platform to connect software as a service companies with the aim of sharing expertise and boosting the industry.
New Zealand has benefited from more than $ 11 billion in technology merger and acquisition activity since the online marketplace Trade Me was sold for $ 750 million in 2006, according to the Bank of Wellington investment, Clare Capital. Some 38 percent of the value came from the rapidly growing software as a service industry.
Clare Capital founder Mark Clare, speaking at the launch event, said there was no reason software as a service couldn’t become an even bigger part of the business. ‘economy.
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“Skeptics thought Trade Me was a once-in-a-generation opportunity, and since then we’ve seen the equivalent of over 15 Trade Me sales, and many of them were SaaS company sales,” a- he declared.
âThe wealth created from this activity returns to the ecosystem through shareholders and founders to create more businesses or join others on their global journey. “
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The country hit a new record for software-as-a-service mergers and acquisitions this year, he said, citing sales from Education Perfect, Seequent, Vend, ezyVet and Timely.
âA healthy level of M&A is a sign of a vibrant local SaaS industry,â he said. âThe perception of offshore mergers and acquisitions as a bad thing could not be further from the truth.
âIn all of the strong digital markets, M&A deals are a very good sign that things are going well. This shows that professional offshore investors, venture capital and private equity funds recognize the quality and expertise of New Zealand SaaS entrepreneurs.
Software-as-a-service investor Serge van Dam, who is part of the expert advisory board behind the community-building initiative, said he hopes that by better connecting the community New Zealand software as a service, businesses would grow faster.
âSaaS could definitely become our number one sector in New Zealand given its steady growth trajectory,â he said, noting the sector’s aspiration to become the country’s number one export sector.
Clare said the country has the potential to grow more businesses the size of cloud-based accounting firm Xero, which reported $ 945 million in revenue this year.