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

SOFTWARE

Jonathan Cantwell, Partner & Head of Software at GP Bullhound, said: “Despite the public market pullback on valuations, software continues to accelerate throughout industries. Deployment-as-a-Service is filling a gap in the market and usage-based pricing models have become a preferred option for companies. We expect the second half of 2022 to be active in M&A as the IPO market is closed and fundraising is challenging.”

Matt Stamp, Partner in the Software team at GP Bullhound, commented: “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.”

Download GP Bullhound’s Q2 2022 Global Software Market Perspectives here.

DIGITAL SERVICES

Oliver Schweitzer and Ravi Ghedia, Executive Directors at GP Bullhound, said: “Digital commerce continued to be an important Digital Services M&A theme in Q2 2022. For example, there was significant M&A and fundraising activity around Salesforce implementation partners. Likewise, M&A within retail data continues to grow, as retailers seek ways to monetise the deep customer data they own. Digital Services closed H1 with resilient levels of deal activity, especially in North America and Europe.”

Download GP Bullhound’s Q2 2022 Global Digital Services Market Perspectives here.

FINTECH

Claudio Alvarez, Partner at GP Bullhound, commented: “In Q2 we have seen Buy Now Pay Later in B2C come under pressure from regulators and investors, while continued digitisation and embedded finance has led rise to several B2B BNPL businesses. Opportunities are ripe for M&A despite turbulence in the crypto market and some players are seeking out acquisition targets to buy assets at significant discounts. As investors shift focus from high growth to profitability, reconsider the macro environment and business models in the next economic cycle, we expect a continued slowdown in Fintech activity.”

Download GP Bullhound’s Q2 2022 Global Fintech Market Perspectives here.

DIGITAL MEDIA

Alec Dafferner, Partner at GP Bullhound, said: “We are seeing various trends shaping the Digital Media landscape in Q2. With the global gaming sector’s continued growth, the opportunity is ripe for in-game advertisers to make their mark with creative campaigns. In the age of streaming, music creators and record labels are coming to terms with new rules shaped by social media platforms, but the burden of chasing internet fame has taken a toll on many artists. Lastly, social media stocks have been significantly impacted due to strategy shifts, earnings misses, and a general slump in the space caused by the current market downturn. Activity on the investment side remains healthy, with the pace and size of investments sustaining as global consumption of digital media increases.”

Download GP Bullhound’s Q2 2022 Global Digital Media Market Perspectives here.

DIGITAL COMMERCE

Alessandro Casartelli, Executive Director at GP Bullhound, said: “We have seen different trends emerge strong in Q2. Augmented Reality’s growing adoption has been initiated through increasing technological advancement and higher usage by millennials and Gen Z consumers, with industry giants doubling down on investment in recognition of strong use cases. As consumers become more comfortable with the idea of second-hand purchases, driven by an environmentally-conscious sentiment, the popularity of designer rental and clothing resale marketplaces continues to grow. Lastly, Buy Now Pay Later presents lucrative opportunities for retailers. On the M&A side, we saw a slight slowdown in transaction volumes, but fundraising remains at healthy levels as capital continues to flow into marketplaces.”

Download GP Bullhound’s Q2 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: 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 12 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.