Who wins at native integration?

Updated on by Fraser Davidson

In Q1 2020 we undertook an online assessment of 453 SaaS companies located in either the USA or Europe. The criteria for assessment was that they have raised over $1m of funding at some point in their history and that they still trade today. We used Crunchbase to compile the list of SaaS companies to assess, looking at the different approaches to integration either side of the Atlantic and the results are interesting……..

We will be releasing the results of this analysis across a few articles in the weeks ahead.

This first blog post looks at the difference in approach between USA SaaS co.s and EU SaaS co.s according to our findings.

Differences in SaaS Funding

Of the 453 SaaS companies analysed, 261 (57.6%) were from the USA and 192 (42.3%) from Europe which, in itself, is indicative of where the centre of gravity of funding for SaaS companies lies.

Doubling down on this there was a clear swing in total investment capital received with USA SaaSs receiving more funding relative to their European peers.

$1m > $2m$2m > $5m$5m > $10m$10m > $25m$25m > $50m
EU25.52%29.69%19.79%15.63%9.38%
USA9.20%18.39%20.69%27.20%24.52%
Grand Total16.11%23.18%20.31%22.30%18.10%

So, in short, no surprises there. More USA SaaSs funded and also, on average, receiving more capital when they are.

SaaS Native Integration Strategies

So what about relative approaches to integration? Overall 66.7% (almost precisely 2/3) of all of those assessed promoted native integrations on their website. A nice round number and a clear majority. The other 1/3 were silent on the matter – surprising and we will do a deep dive on whether this is influenced by sector in a follow-on post.

66.7% DO feature native integrations on their website

33.3% DO NOT feature native integrations on their website

However, drilling into this headline statistic on a purely continental basis there is a difference. The USA SaaS’s won out. 69.0% of the USA SaaS companies published availability of native integrations versus 63.5% of European SaaS companies. A reasonable swing.

DO NOT feature native integrationsDO feature native integrations
EU36.5%63.5%
USA31.0%69.0%
Grand Total33.33%66.67%

Of those that do feature native integrations we then dived a degree further to look at the volume of integrations promoted. Yet again the USA took a lead here. 38.9% of US SaaS’s promoted >20 native integrations compared to only 30.8% of EU SaaS companies. Reversing this statistic then 48.08% of EU SaaS companies had <10 native integrations published as compared to only 43.21% of US SaaS co.s.

Number of Native IntegrationsEU SaaS co.s by volume of integrationsUSA SaaS co.s by volume of integrations
1-524.04%22.84%
6-1024.04%20.37%
11-2021.15%17.90%
21-5024.04%27.78%
50-1003.85%8.02%
100+2.88%3.09%
Grand Total100.00%100.00%

You will say that we are biased, but interoperability and integrations are key in most areas of SaaS these days and it is interesting to us to see a) the number (1/3) who don’t feature integrations and b) the strong bias towards the USA for those that do.

US vs EU SaaS Approaches

So overall we can see that USA SaaS companies:

  • Typically raise more capital
  • Typically emphasise integrations
  • Are more likely to have native integrations and typically build more integrations

Whilst there is little we can do to improve the chances of an EU business raising more capital, we absolutely can facilitate the ability to increase the number of native integrations on offer. EU companies in particular need to catch-up a little.

Equally, if you are one of the overall 33% of the total SaaS co.s with no integrations featured at all, you may want to consider what the large majority of SaaS co.s know and you don’t………. we are here to help.

Speak to one of our team.

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