Enterprise software spending is on an upward trend, and is expected to reach $326 billion this year; meanwhile, startups and investors have taken notice. There are currently 1,425 active startups in the space — as listed by CrunchBase — and there’s been an influx of venture funding. According to PitchBook, venture funding of enterprise productivity startups has more than doubled, from $4.75 billion in 2012 to $11.46 billion last year. This year, these software startups have already raised $6.26 billion to date, and the median deal size is up 25 percent compared to 2015, reflecting current market demand and investor appetite.
With investors hot on enterprise startups, the market will become more fragmented and saturated than ever before. End users are already inundated with dozens, if not hundreds, of similar software solutions, each which focus on filling one specific business need as effectively and efficiently as possible.