The economic recession and financial crisis have cast a dark cloud over most of the venture capital industry. The popular press continues to report bad news: poor exit markets, reduced venture investment and employee layoffs at technology firms. Despite these glum reports, innovative technologies are still being developed and many promising venture-backed companies are maintaining revenue growth. One example is companies developing the software-as-a-service model, the technology more commonly known as “SaaS.” As a provider of banking services to SaaS technology companies and as a consumer of SaaS offerings, SVB has observed SaaS as one of the bright spots in the venture capital industry. We expect that SaaS innovation will expand during the economic recession and SaaS technology will become a mainstay of enterprise computing.
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