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

SOFTWARE

Jonathan Cantwell and Matt Stamp, Partners at GP Bullhound, said: “Q4 2021 saw global M&A and private placement activity break records in the software sector, with buyouts reaching historic levels and private placements following a similar trajectory. The coming year holds a lot of promise for Web3-related projects, with industry leaders launching initiatives and consistent VC interest in SaaS. Software platforms come to alleviate the pains of supply chain shortages, as these challenge companies well into 2022. The entire SaaS community is watching the public markets as SaaS valuations are currently volatile, but business fundaments, growth, retention and other unit economics remain as strong as ever.”

Download GP Bullhound’s Q4 2021 Global Software Market Perspectives here.

DIGITAL SERVICES

Simon Nicholls and Greg Smith, Partners at GP Bullhound, commented: “Q4 2021 saw strong deal activity in the Digital Services sector and provided a material increase on activity across 2020. We look at the continued consolidation we have seen in healthcare marketing driven by significantly increasing budgets. In addition, there is strong demand to access gamers’ spending – forecast to reach £150bn by 2025. Advertisers are seeking to access this highly engaged and premium audience. Lastly, AI adoption in market is leading to AI specialist providers attracting major consolidators looking to bolster the deep expertise and access to talent in the space.”

Download GP Bullhound’s Q4 2021 Global Digital Services Market Perspectives here.

FINTECH

Claudio Alvarez, Partner at GP Bullhound, commented: “We witnessed record levels of activity across fintech in 2021, with many companies fuelling their ambitions with mega funding rounds. Fintechs are securing unicorn status at a record pace. On the trends flowing into 2022, we anticipate explosive growth and substantial investment pouring into DeFi. In addition, we see a fierce battle for digital asset custody unfolding as digital AUM reaches new heights, driven by fast-growing investment volumes from corporates and institutional investors. Equity crowdfunding platforms are growing globally, as they open early-stage investment to the masses.”

Download GP Bullhound’s Q4 2021 Global Fintech Market Perspectives here.

DIGITAL MEDIA

Alec Dafferner, Partner at GP Bullhound, said: “The Digital Media sector continued to evolve in Q4 with digital publishing redeeming itself after years of slowed growth. Non-Fungible Tokens (NFTs) show no signs of slowing down, as major brands continue to invest hefty sums in these digital assets. Advertising dollars also continue to flow to the metaverse, with collaboration technologies offering an abundance of opportunities in new virtual environments. Lastly, with the increase in global consumption of digital media, the pace and size of investments in the sector continue to accelerate.”

Download GP Bullhound’s Q4 2021 Global Digital Media Market Perspectives here.

DIGITAL COMMERCE

Alessandro Casartelli, Executive Director at GP Bullhound, said: “In Q4 we saw a rush of digital commerce SPACs and IPOs – a trend we think will continue in 2023 with over 400 SPACs currently seeking targets in the sector. We see several trends emerging and continuing – for example the need for native brands to adopt striking packaging in bid to win customers. And in real estate, the iBuying sector was rocked by Zillow’s departure, but appetite for these platforms is continuing, but players will now require a delicate balance to continue sustainable growth.”

Download GP Bullhound’s Q4 2021 Global Digital Commerce Market Perspectives here.

ASIAN TECH INVESTMENTS

Elsa Hu, Executive Director at GP Bullhound, commented: “In Q4 2021 we’ve seen Asian investors step up to deploy large amounts of capital into the US and Europe – marking a two-year high since Q4 2019 with c.$50bn into the US, and an increase of almost 90% in European deals since Q4 2020. Chinese investors maintain an outward-looking approach as domestic regulation produces uncertainty. Metaverse-related assets remain particularly favoured by investors, whose market enthusiasm for digital worlds continues. Starting from this quarter, we begin covering a new sector called Metaverse to better capture data and conduct analyses.”

Download GP Bullhound’s Q4 2021 Asia Insights 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: Greg Smith, Partner (US), GREG.SMITH@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
ASIA: Elsa Hu, Executive Director & Head of Asia, ELSA.HU@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 10 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.