Public SaaS Companies Are Now Worth $1 Trillion

Microsoft, Google, Apple and Amazon have made the headlines for a while for crossing $1 trillion in market cap each.  That’s crazy growth — almost all fueled by the crazy growth of the Cloud.

No SaaS company is yet worth $1 trillion, through perhaps that is coming.  What has happened though is the Top 30 SaaS companies together are now worth $1 Trillion.. That’s up from $800 billion just a little while back when we took a look at Cloud Decacorns.

That’s $1 Trillion in market cap from the SaaS leaders.

These are the best of times in SaaS indeed:

Given the incredible IPOs in the pipeline, we could be at $2 Trillion in the next 24 months.  We’ll see.

A few other things we can learn from this analysis:

1. Power Laws are here, too.  The Top 10 SaaS companies have 70% of the market cap and value.  A $2 billion market cap is amazing.  But $20 billion is now becoming “common”, if that term can be used.
2. Shopify is the crazy one.  From $8 billion in market cap in 2017 to $117 billion today!
3. Go long.  Most of these names were worth a fraction of their current market cap at IPO.  Zendesk IPO’d at $1 billion.  Today, ti’s worth $11 billion.
4. You Can Grow Your TAM.  Almost all the leaders here started off doing something “smaller”.  Salesforce just did SFA.  Slack was a single org self-service app.  Veeva added an entire, larger second product.  Twilio expanded into contact center and email and more.  Shopify added a wildly successful enterprise offering.  RingCentral went from SMB to enterprise-grade contact center. Zoom used to be a B2B app ?