Key market insights into Software, Digital Services, Fintech, Digital Media and Digital Commerce.

SOFTWARE

Jonathan Cantwell, Partner & Head of Software at GP Bullhound, said: “In the latest report, we have highlighted key trends that have dominated Q4 2022. ChatGPT drove accessibility into previously difficult to penetrate markets, allowing for the democratisation of content, regardless of S&M budget; SaaS businesses are providing more customisable pricing models as customers lose interest in bundled offerings; the business intelligence ecosystem continues to develop and scale; customer experience software is notably resilient in the face of uncertain economic conditions as it allows brands to differentiate and win consumer dollars.”

Matt Stamp, Partner in the Software team at GP Bullhound, commented: “While global dealmaking pulled back from a strong H1, Q4 saw a record level of quarterly buy-out activity as investors took advantage of comparatively cheap public markets. Both M&A and fundraising were characterised by trends we expect to continue with a focus on resilience, unit economics and profitability. Given attractive secular dynamics, we see significant capital continuing to be available to drive further M&A, buy-outs and P2Ps in 2023.”

Download GP Bullhound’s Q4 2022 Global Software Market Perspectives here.

DIGITAL SERVICES

Oliver Schweitzer and Ravi Ghedia, Executive Directors at GP Bullhound, said: “In the last quarterly report on 2022, we have highlighted several key trends driving the sector: social commerce continues to expand as social media usage continues to rise; desire to create continuous transformation processes are creating opportunities for cloud consultancies; and Managed Service Providers are becoming increasingly crucial to the long-term IT strategies of large enterprises. H2 2022 deal volumes were in line with H2 2020, but overall 2022 annual volume was in line with a highly active 2021. After a decline in Q3 2022 reflecting macroeconomic conditions, Q4 2022 saw an uptick in deal volume from Q3, potentially indicating a rise in optimism and need to deploy capital.”

Download GP Bullhound’s Q4 2022 Global Digital Services Market Perspectives here.

FINTECH

Claudio Alvarez, Partner at GP Bullhound, commented: “In Q4, we have seen several key trends: more banks are innovating ACH payments – with or without fintechs – to remain competitive; increasing number of countries globally are exploring central bank digital currencies; and AI/ML adoption in credit scoring processes is on the rise. On the dealmaking side, online lenders and credit providers successfully raised capital. Fintech equities remained stable, with Financial Data & Analytics the best performing sub-sector.”

Download GP Bullhound’s Q4 2022 Global Fintech Market Perspectives here.

DIGITAL MEDIA

Alec Dafferner, Partner at GP Bullhound, said: “We have seen various trends shaping the Digital Media landscape in Q4. While Twitter deals with dysfunction following Elon Musk’s takeover, new players are vying to lure its users over to their platforms. Some big digital media companies are facing US government crackdowns, as national security and monopolisation concerns rise. Hypercasual games are enjoying a revival, with several notable transactions closing in Q4. There was an uptick in equity performance in Q4, with Western gaming an obvious leader. As inflation fears calm, digital media indices will benefit, though the macroenvironment remains uncertain.”

Download GP Bullhound’s Q4 2022 Global Digital Media Market Perspectives here.

DIGITAL COMMERCE

Alessandro Casartelli, Executive Director at GP Bullhound, said: “Several trends emerged across the digital commerce space in Q4. Generative AI is redefining the industry as businesses opt for high quality content generated by the technology; mobility sector companies are taking advantage of the metaverse, focusing efforts on sales, engagement and car design activities; and UGC continues to engage audiences more than influencer content, with authenticity a major differentiating factor. Despite a slowdown in M&A activity in Q4, megadeals like Trimble’s acquisition of Transporeon, and Getir’s takeover of competitor Gorillas, stood out. We see continued consolidation in digital commerce players.”

Download GP Bullhound’s Q4 2022 Global Digital Commerce Market Perspectives here.

Enquiries
For enquiries, please contact:
SOFTWARE: Jonathan Cantwell, Partner (US), JONATHAN.CANTWELL@GPBULLHOUND.COM
SOFTWARE: Matt Stamp, Partner (Europe), MATT.STAMP@GPBULLHOUND.COM
DIGITAL SERVICES: Simon Nicholls, Partner (Europe), SIMON.NICHOLLS@GPBULLHOUND.COM
DIGITAL SERVICES: Oliver Schweitzer, Executive Director (US), OLIVER.SCHWEITZER@GPBULLHOUND.COM
DIGITAL SERVICES: Ravi Ghedia, Executive Director (Europe), RAVI.GHEDIA@GPBULLHOUND.COM
FINTECH: Claudio Alvarez, Partner, CLAUDIO.ALVAREZ@GPBULLHOUND.COM
DIGITAL MEDIA: Alec Dafferner, Partner, ALEC.DAFFERNER@GPBULLHOUND.COM
DIGITAL COMMERCE: Alessandro Casartelli, Executive Director, ALESSANDRO.CASARTELLI@GPBULLHOUND.COM

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 13 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.