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Q3 2022 insights into Software.

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19 October 2022 - GP Bullhound publishes qualitative insights into broader Software trends and public and private valuations across the transaction spectrum, and interviews with today’s leaders transforming the sector.

Jonathan Cantwell, Partner & Head of Software at GP Bullhound, said: “Several trends emerged across the software space in Q3. Machine Learning is starting to play a larger role in the SaaS space; chatbots are increasing in popularity as businesses adopt 24/7 customer support; and Earned Wages Access companies bridge the gap between work and pay, given the tighter job market and shrinking workforces. We are also seeing API-centric security solutions gaining rapid adoption, and vertical SaaS solutions rising in popularity due to their cost-saving solutions for businesses.”

Matt Stamp, Partner in the Software team at GP Bullhound, commented: “The broader macroeconomic and geopolitical environment has continued to influence the market in Q3. Public markets continue to be shut to IPOs and while M&A and private placement volumes are down quarter on quarter, 2022 YTD numbers are higher than any year aside from 2021. The significant dry powder, that both investors and strategics have accumulated, is focused on top-quartile investment opportunities, buy-outs, and funding consolidation strategies across multiple subsectors. We expect M&A-driven market consolidation to be a key theme in Q4, in addition to the ongoing trend of public to private transactions.”

What’s trending this quarter in Software?

Chatbots enter centre-stage

  • Chatbots are becoming increasingly popular among businesses and consumers, with growth largely driven by the adoption of 24/7 customer support
  • The Chatbot ecosystem continues to develop and scale: by 2024, consumer retail spending via chatbots worldwide is likely to reach $142bn – up from just $2.8bn in 2019

EWA companies to alter current financial system

  • Earned Wages Access (EWA) companies remove the gap between work and pay, and adoption is being driven by a tight job market and shrinking workforce
  • Fintech companies are partnering with financial institutions to enter the space

The evolution of MLaasS

  • Machine Learning (ML) is starting to play a larger role in the SaaS space, making MLaaS will increasingly essential for AI-based SaaS businesses 
  • Large players in the space are integrating MLaaS into their current cloud offerings
  • By 2028, Market Growth Reports predicts that the MLaaS market will be valued at $8.3bn, up from $900m in 2022, representing a tremendous 43.5% CAGR

For any enquiries, please contact:
Jonathan Cantwell, Partner (US), at
Matt Stamp, Partner (Europe), at

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 12 offices spanning Europe, the US and Asia. For more information, please visit

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