Nearly 50% of newly added billion-dollar enterprises provide storage and cybersecurity products
Atlas VPN research team discovered that there had been a significant increase in new enterprise software firms in the last year, with cybersecurity and storage products accounting for 47% of the newly added firms. Enterprise software companies provide products or services designed for organizations rather than individual consumers.
There were sixteen newly launched billion-dollar enterprise software businesses in Europe last year, research conducted by GP Bullhound reveals. The monetary value of these companies reaches 25 billion dollars combined.
30% of the 25 billion dollars are brought in by the storage software industry, while 17% by cybersecurity software companies. There had been three newly launched storage software companies during last year. The companies offer software for backup, disaster recovery, and secure data sync and share access.
The research also highlights the launch of four European-based enterprise software companies that provide cybersecurity solutions. The software provided by these companies either helps organizations detect and prevent various cyber threats or helps developers secure the use of open-source code.
Meanwhile, 13% of the new software enterprise companies provide communication-related products. The same percentage of enterprise software businesses offer financial services. Data analysis tools accounted for 10% of the billion-dollar enterprise software companies.
In the last twelve months, collaboration enterprise software companies accounted for 7% of the newly launched billion-dollar companies. Enterprise collaboration companies provide products that allow coworkers to store or transfer information and communicate in one place.
Finally, enterprise marketing tools accounted for 6% of the new billion-dollar businesses, while content management products accounted for 4% of the companies. The GP Bullhound report suggests that the technology sector is least likely to suffer from a deep recession.
As businesses increasingly shift to operating online rather than offline, the basic needs for running online are growing: companies need solutions to store large amounts of data and ensure that the stored data is properly secured. Hence, businesses tend to invest in storage and cybersecurity solutions rather than in communication or finance tools.
Enterprise software and fintech sectors see the largest growth
In the last twelve months, there has been a 57% growth in the number of billion-dollar businesses that provide enterprise software solutions. At the moment, there are 44 billion-dollar enterprises in Europe.
There also has been a considerable growth in the marketplace sector: last year, the number of marketplace models reached 22, representing a 38% increase. The marketplace model is one of the most common models of digital business. It is an online platform that acts as a middleman between the product and the consumer.
Meanwhile, the fintech industry has seen the highest growth this year: in 2019, there had been 11 billion-dollar fintech companies registered in Europe, while in 2020, the number hit 18, representing a 64% growth rate.
Finally, the digital media sector experienced a 15% growth from 13 companies in 2019 to 2 newly added ones in 2020. In 2019, there had been 9 e-commerce companies operating in Europe, yet the sector did not see any growth this year.