Jonathan Cantwell, Partner & Head of Software at GP Bullhound, said: “In Q1, we saw a variety of factors at macro and micro levels impacting the SaaS market. IPO activity was down significantly, as economic conditions and geopolitical tensions tremble the market. The closed IPO door has resulted in more M&A processes embarking and deal activity by strategics and PE funds. Private financings remain stable across all regions, although check sizes are moderate and deal processes have taken longer to complete. Furthermore, many businesses and government entities carried out security assessments via software to identify ways of improving detection and mitigation of future vulnerabilities across the internet, following several security breaches.”
Matt Stamp, Partner in the Software team at GP Bullhound, said: “Despite the continuing volatility on public markets and the geopolitical and economic uncertainty, the SaaS funding and M&A landscape in Europe has remained robust in Q1. This strength is driven by several factors: the long-term conviction of strategics and investors, which tailwinds from 2020/2021 when we’ve seen a permanent shift in digital transformation; the digital adoption across every part of the economy; and the amount of dry powder focused on the sector, for example the $450bn across European investors. We expect these trends to continue into Q2, albeit processes taking longer and investors paying more attention to fundamentals such as medium-term profitability.”
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 www.gpbullhound.com.