'SaaSpocalypse' avoided as software catches angel investors' eyes again
Software has regained its position as the largest angel investment category despite first quarter predictions of a looming 'SaaSpocalypse'.
The software sector has made a surprising comeback, bucking predictions of a looming "SaaSpocalypse" after initial quarter forecasts. According to the Catalist New Zealand Angel Market report, software investments surged by 48 percent in the second quarter (Q2), up from the previous quarter's decline. This recovery was mirrored by a 42 percent increase in investments over the year, as well as a 33 percent rise in angel investments directed towards female-led startups.
The report noted that angel investors are increasingly focusing on established businesses, with 75 percent of capital and 83 percent of investments going to follow-on rounds rather than new startups. Despite ongoing economic uncertainty, a total of $2.7 million was invested into 33 software businesses, supported by 132 active angels, signaling renewed confidence in the sector.
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