Funding for enterprise SaaS startups reached the highest level in over a year in Q2, with VC investment rising 70% QoQ to $21.9 billion.

Much of the increase has been driven by AI, which is poised to disrupt the consumer relationship management segment. VCs have taken note: In October, Sierra raised $175 million to build conversational customer service AI agents.

A market map created by PitchBook explores where capital has flowed throughout enterprise SaaS and highlights the customer relationship management segment. PitchBook analysts have broken down the CRM segment into five categories: Marketing, Sales, Digital commerce, Customer service & support, and Cross-CRM.

VC investment in enterprise SaaS was on the mend in Q2 after a relatively slow period. In the CRM space, investment rose slightly, reaching $2.3 billion from $2.2 billion in Q1. In Q1 168 deals were recorded; in Q2, that number fell to 148.

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