Q2 2022 insights into Software.

Jonathan Cantwell, Partner & Head of Software at GP Bullhound, said: “Several trends emerged across the software space in Q2. Despite the public market pullback on valuations, software continues to accelerate throughout industries. Continuous Deployment-as-a-Service is filling a gap in the market, as companies want to undertake all levels of deployment on behalf of their clients. Usage-based pricing models have become a preferred option for companies, given revised software spending budgets because of the current economic climate. Programming language Rust has seen a spike in popularity due to its simplicity, without sacrificing capability or flexibility. On the deal front, we expect the second half of 2022 to be active in M&A as the IPO market is closed and fundraising is challenging. Software consolidators and financial sponsors continue to be active in deal making for the right assets.”

Matt Stamp, Partner in the Software team at GP Bullhound, commented: “We continue to see activity levels varying widely driven by current public and private market dynamics. Fears of a recession and hawkish central bank activity are suppressing public market valuations and combined with volatility levels, have kept the IPO door shut. Private markets, whilst more selective and with a focus on profitability, continue to experience strong M&A volumes and high-quality companies have been able to raise funding despite broader investor sentiment.”

Enquiries
For any enquiries, please contact:
Jonathan Cantwell, Partner (US), at jonathan.cantwell@gpbullhound.com
Matt Stamp, Partner (Europe), at matt.stamp@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 12 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.