Following the Money in SaaS (software as a service) - (OTC: $BZWR) (NYSE: $TOST) (NYSE: $TWLO) (OTCQB: $QGSI)
Investors, VC and Business Betting on the Future
Vancouver, BC - June 13, 2022 (Investorideas.com Newswire) Investorideas.com, a global news source and expert investing resource covering tech and fintech issues a sector snapshot on the SaaS (software as a service) market featuring Business Warrior Corp. (OTC: BZWR), a SaaS company providing small businesses in the United States with a suite of data-driven marketing and next-generation, funding solutions to boost local market dominance.
According to the latest research by SkyQuest Technology, the Global SaaS Market was valued at USD 143.77 Billion in 2021 and it is expected to reach USD 720.44 Billion by 2028, with a CAGR of 25.89% during the forecast period of 2022 - 2028.
Business Warrior Corp. (OTC: BZWR) just announced the acquisition of Alchemy Technologies, a global FinTech software as a service (SaaS) company. The acquisition strengthens Business Warrior's core marketing and lending software while expanding the Company's brand and services to meet global demand.
From the news: Alchemy specializes in creating end-to-end, cloud native lending experiences for other FinTech companies, merchants and banks. The company installs its core solution to a number of different verticals, including: Personal loans, Point of Sale Financing, Health and Beauty Financing, Construction Loans, Solar and Home Improvement Financing, Small Business Lending, Skillset Financing and Crowdfunding Platforms.
In working with Alchemy to develop its Business Warrior Funding lending platform earlier this year, Business Warrior identified Alchemy as an attractive acquisition opportunity, noting its operational and financial performance.
Alchemy is a global company with customers in six different countries and territories, the United States, Mexico, United Arab Emirates, Australia, United Kingdom and Puerto Rico. In 2021, Alchemy generated total revenues of $2.8 million. The company is on track to add additional revenue and projects full-year 2022 revenues to increase by 77% compared to 2021.
"After working with Alchemy, we quickly realized the massive potential of adding this international group of industry leaders to the Business Warrior team," explains Business Warrior President Jonathan Brooks. "With our Business Warrior platform, premium marketing, and now a global lending technology presence, we are building solutions that propel the success of small businesses."
As a subsidiary of Business Warrior, Alchemy will remain under its current brand name and will continue to support its clients and internal teams. Alchemy and its more than 30 full-time employees and over 100 full-time contracted developers will be an independently managed subsidiary of Business Warrior. This acquisition expands the Business Warrior team to 157 professionals focused on a singular mission: to be the source for success and long-term growth for small businesses through marketing technology and unique funding solutions. Alchemy Founder and CEO, Timothy Li, will join Business Warrior as the Global Head of Technology, where he will work alongside the Business Warrior executive team. Li, who has an extensive background and is a recognized expert in the FinTech industry, previously worked as a Chief Information Officer and as a Chief Risk Officer for JP Morgan Chase, Loan Depot, and Realty Mogul.
"We are so excited about joining the Business Warrior family! This move provides Alchemy with the additional resources, tools and capital necessary to enhance our service to customers," states Li. "Both companies believe small business owners are the lifeline of local communities. By bringing Alchemy and Business Warrior together, the positive impact on these communities is going to be worldwide."
Randy Schmidt, formerly the COO of Alchemy, will transition into the role of Senior Vice President of Alchemy and will lead its internal team moving forward.
The value of the deal at closing is $8.75 million with $2.25 million in cash and $5 million in preferred stock with a 7%, three-year cash dividend. In addition, $450,000 in restricted common stock will go to existing Alchemy employees that will vest over 24 months.
Looking at growth and investor interest in the SaaS sector, Forbes just reported "In 10 years, SaaS funding has grown by almost seven times and outpaced the growth of overall venture capital funding by almost six times.
"Just last year alone, 27 SaaS companies went public, representing around $225 billion of market capital. One of the reasons there is so much investor interest in software is because the use cases for it continue to grow rapidly, spanning a wider range of industries than previously imagined."
One of the SaaS companies that went public last year was Toast (NYSE: TOST), a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a single platform of software as a service, or SaaS, products and financial technology solutions that give restaurants everything they need to run their business across point of sale, operations, digital ordering and delivery, marketing and loyalty, and team management.
Research and Markets reports, "SaaS allows an organization to run an application at minimal upfront cost and speeds up overall functionality of the organization. Major players in the Software as a Service (SaaS) market are Salesforce, ServiceNow, Microsoft, Google, Cisco, Slack, Adobe, Oracle, Amazon AWS, DocuSign, Zendesk, Dropbox, ADP, Atlassian Confluence, Shopify, Workday, Hubspot, SAP, IBM, Box, Concur, JIRA, GitHub, GoToMeeting, Twilio (NYSE: TWLO) , CoupaSoftware, Xero and Zuora."
Positioning for future growth in the SaaS market, Twilio (NYSE: TWLO) recently announced Joyce Kim will be joining the company as Chief Marketing Officer, reporting to President of Revenue, Elena Donio. As Chief Marketing Officer, Kim will lead global marketing as the company executes its vision of becoming the leader in the emerging customer engagement category.
"It's a crucial time for Twilio as we look to scale and embrace the unique opportunity to define a new category in technology," said Elena Donio, President of Revenue. "With decades of experience across SaaS product positioning, demand generation and large scale developer community engagement, Joyce's expertise directly lends itself to leading Twilio's growing, global marketing organization. Joyce brings a great energy to Twilio, and I can't wait to see what she builds."
Another small player in the space, QuantGate Systems Inc. (OTCQB: QGSI), an Artificial Intelligence, Machine Learning, SaaS-based Fintech solutions provider recently announced that it has entered into a Joint Venture agreement with Infocorp Computer Solutions Ltd. a leader in payments and system integration for the public sector with Municipal and State/Provincial clients across North America, to develop and market fintech solutions globally.
From the news: The joint venture will aim to develop and distribute fintech solutions for the global financial services market. The two companies have complementary strengths and share a common goal of providing innovative solutions that meet the needs of their customers.
For investors following SaaS stocks and industry moves; start-ups, VC funding, acquisitions and smart money are betting big on this trend.
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