These VCs Are Investing In Software as A Service (SaaS)

More than $1 trillion was erased from software company market capitalisation in the first week of February 2026, according to a February 11 report from Forrester. The sell off followed rapid advances in AI agents and investor uncertainty about how software business models will adapt.

Forrester titled its report “SaaS As We Know It Is Dead: How To Survive The SaaS-pocalypse!”, but it also makes clear that reports of collapse are overstated. Global SaaS spending is projected to increase from $318bn in 2025 to $512bn in 2028 and $576bn in 2029. Enterprises continue to invest tens or hundreds of millions of dollars in SaaS platforms that run front, middle and back office operations.

The report argues that enterprise core systems are not disappearing. Instead, they are evolving as intelligent capabilities are embedded into existing platforms. For buyers and vendors alike, the question is how to adapt commercial models and product design to this new environment.

Which Vendors Are Best Placed To Thrive?

Forrester expects horizontal point solution vendors with low switching costs to face pressure, particularly where products lack deep workflow integration. At the same time, it sees opportunity for companies that deliver measurable return on investment and embed themselves deeply into customer operations.

Vertical or domain specific SaaS companies are forecast to benefit from this transition. The vertical software market is projected to grow from about $133.5bn in 2025 to $194.0bn in 2029. Providers serving complex sectors such as healthcare, manufacturing, pharmaceuticals and life sciences, and those with proprietary data assets, are positioned to build durable offerings. Forrester cites Epic and Cerner in electronic health records and IQVIA in life sciences as examples of specialised vendors.

Large enterprise providers including Oracle, Salesforce and ServiceNow are integrating AI agents into regulated workflows. They are drawing on their consulting ecosystems, governance structures and access to customer data to strengthen their platforms. Forrester describes this pivot as real and happening now, with incumbents working to modernise their application stacks.

How Should Enterprises Respond?

Forrester advises organisations not to rush into buying new tools without a solid architectural view. The report says the reaction should not be “buy more AI” and instead recommends rearchitecting existing SaaS investments and examining how they navigate an enterprise AI strategy.

It calls on buyers to rationalise their SaaS portfolios, manage redundancy and renegotiate contracts as pricing models evolve from per seat to consumption or outcome based structures. Enterprises are also encouraged to define where AI agents can take on defined workflows and to introduce governance roles to oversee productivity and quality.

Data from Beauhurst just shows the scale of the UK’s high growth software ecosystem. The platform tracks more than 23,000 ambitious companies and reports that 2,245 visible scaleups have raised £6.34bn in equity investment. That level of capital and activity suggests that SaaS is not fading away. With that being said, these are VCs investing in SaaS right now:

Navigate Ventures

Navigate Ventures is focused on early/mid growth stage capital for emerging B2B Enterprise SaaS companies outside Silicon Valley, between their Series A and Growth rounds. With offices in Los Angeles and London, Navigate looks to invest in companies with great teams, strong traction, and demonstrated product market fit, where the early venture risk is mitigated. The team is focused on helping entrepreneurs prepare for rapid growth, scaling, expansion, and getting to a growth round, offering an accelerated path to DPI and liquidity, aligning capital deployment with disciplined growth and value creation.

About Ivan Nikkhoo, Managing Partner, Navigate Ventures

With over 41 years of C-level global experience in the tech sector, Ivan is a seasoned investor, entrepreneur, board member, and educator focused on helping teams prepare for rapid growth, scaling, and liquidation events. Ivan is the Founder and Managing Partner at Navigate Ventures, a B2B Enterprise SaaS early/mid growth stage fund focused on helping entrepreneurs outside Silicon Valley, between series A and the B Growth rounds (A Extension Rounds).

Ivan is also the principal at N3 Capital, a multi-strategy single family office focused on long term strategic, responsible, and sustainable direct and indirect investing across asset classes including Venture Capital, Private Equity, and Real Estate, looking to solve the world’s biggest problems by supporting the most creative innovators. Ivan has deep domain expertise and significant experience in investing tech investing, venture capital, and private equity. He is a member of YPO and CEO organisations and is the Founder & Chair of the VC Vertical in YPO globally.

He has a strong global network and regularly hosts a series of private dinners in several cities around the world to discuss the latest industry and financial trends and developments. Ivan has also been an Adjunct Professor at USC Marshall School of Business and has taught and lectured at universities around the world. Ivan has served on several business, corporate, government, and non-profit boards around the world. He has been featured in numerous publications, including Forbes, Fortune, VC Journal, Business Insider, and TechCrunch. He was a finalist for the E&Y Entrepreneur of the Year Award, and is a frequent speaker at industry and family office conferences and professional organisations including SuperVenture, Prestel & Partner, IPI, Campden Wealth, 0100Conferences, YPO, among others.

Mr. Nikkhoo received his MBA from USC Marshall School of Business and his Bachelor of Science in Engineering from McGill University. He has completed executive education programs at HBS and Stanford and is a General Securities Principal licensed with FINRA/SIPC. He has lived on three continents, has traveled extensively throughout the world, speaks three languages, and is experienced in doing business globally. He lives in Bel Air, California with his family, enjoys travel, and is an avid skier and sailor.
 

Plug and Play

Plug and Play ranks among the most active venture capital firms in the world, with more than 2,000 startups in its portfolio and over 30 unicorns. The firm invests primarily at the seed stage, backing ambitious founders who build scalable SaaS, fintech, enterprise, AI, energy, mobility, and health companies.

Plug and Play invests in SaaS startups that solve real operational problems and integrate directly into enterprise workflows. These companies generate recurring revenue, demonstrate product-market fit, and scale efficiently across markets. The investment team evaluates each opportunity individually rather than applying a rigid batch model, allowing flexibility based on traction, technology, and long-term potential.

Plug and Play accelerates growth by connecting founders directly to decision-makers across a network of more than 550 corporate partners. This access shortens sales cycles, reduces customer acquisition costs, and drives commercial validation. With offices in over 60 cities, the firm helps startups expand internationally and enter new markets faster. The ecosystem also includes more than 300 venture capital partners, creating strong co-investment and follow-on funding opportunities.

By combining early-stage capital, global reach, and corporate distribution, Plug and Play helps SaaS startups hit critical milestones and scale into market leaders.
 

About Saeed Amidi, Founder and CEO, Plug n Play

 
Saeed Amidi is a seasoned investor and executive with over 30 years of experience growing businesses in numerous industries, including real estate, bottled water, packaging, and technology investing. Following the early success of his various businesses, The Amidi Group initially purchased a building in Palo Alto and decided to rent the extra office spaces to startups.

Once home to several of the first and most notable startups, the property, deemed the “Lucky Building,” has seen a surplus of successful startups and entrepreneurs come through its doors, including Larry Page and Sergey Brin from Google, Pierluigi Zappacosta from Logitech, Peter Thiel from PayPal, and Andy Rubin from Danger. Over the years, Saeed realized the unique position this building put his family and businesses in as investors.

As the CEO and founder of Plug and Play, Saeed applies his passion for the tech industry daily by working with forward-thinking partners and the best global startups to facilitate positive change worldwide.

Since Plug and Play’s launch in 2006, the company has worked with over 90,000 startups, made over 2,000 investments, and boasts over 30 unicorns including Dropbox, PayPal, Lending Club, N26, and Honey. Similar to his unexpected success with the “Lucky Building,” Saeed considered himself lucky overall when he moved to Silicon Valley in the late 70s, where he was then unaware of the ecosystem it would become.

In the midst of all his entrepreneurial pursuits, Saeed never lost sight of what matters most: family. He has encouraged the importance of building strong relationships both personally and professionally. With Plug and Play being a family-owned business, he’s implemented a work culture that supports employees and makes them feel like they are part of the family.

Saeed is recognised in the community along with many successful serial entrepreneurs and veteran financial executives. His contributions to the technology industry and charitable efforts supporting disruptive startups have made him a notable professional in many circles. Out of the office, you can find him on the golf course or spending time with his family.
 

NexaTech Ventures

NexaTech Ventures is a £100 million venture capital firm founded by Scott Dylan, specialising in AI and technology startups at the intersection of innovation and commercial viability. Based between Dublin and California, the firm backs early and growth-stage SaaS companies that are solving real operational problems — not chasing hype cycles.

NexaTech’s investment thesis centres on SaaS businesses with strong unit economics, defensible technology, and clear paths to scalable recurring revenue. The firm has a particular focus on AI-native SaaS platforms, where machine learning isn’t bolted on as an afterthought but embedded in the core product architecture. Scott brings over twenty years of experience spanning digital strategy, business transformation, and technology leadership giving NexaTech a distinctive lens on which enterprise and B2B SaaS models will endure beyond the current AI gold rush.

What sets NexaTech Ventures apart is a hands-on approach to portfolio companies. The firm doesn’t simply write cheques; it actively supports founders through go-to-market strategy, operational scaling, and navigating the regulatory landscape that’s rapidly evolving across both the UK and EU. For SaaS founders building something meaningful, NexaTech Ventures is a partner, not just a funder.

About Scott Dylan, Founder, NexaTech Ventures

Scott Dylan is the Founder of NexaTech Ventures, an international venture capital firm managing a £100m fund dedicated to early-stage AI and technology startups.