Bessemer’s Byron Deeter thinks SaaS companies could grow even faster in 2021

Byron Deeter is not backing down from his optimism about the cloud and the end of the COVID-19-induced wave of software buying doesn’t have him too worried.

Of course, Deeter is an investor at Bessemer, a venture capital concern that has done well betting on the cloud, so you might expect him to stay a cloud bull. But during a recent chat with TechCrunch as part of our Extra Crunch Live series, his answer was worth re-reading.

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We asked the about what might happen once the newly announced vaccines arrive and the pandemic-led digital transformation acceleration loses its tailwind.

“Will that growth decelerate? [Or] was it a point-in-time moment for COVID? Or has this been a pulling forward of overall trends? Certainly, you’re going to have both,” he said, adding that he doesn’t “think in a year from now, we’re going to be spending 10 hours a day on Zooms,” but that in his view Zoom will remain “foundational in the economy.”

In Deeter’s view, “we’ve just set a new baseline [for software] and the beauty of these subscription businesses is that they’re not going to turn them off.” The result of all of that? Bullish growth expectations.

Drilling in further, we asked if he expects Bessemer software portfolio companies will grow faster in percentage terms in 2021 than they did in 2020. Saying that the cohort profile will change, he added that “on balance,” he thinks that “there’s a real case that [the group] could grow the same or faster.”