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

SOFTWARE

Jonathan Cantwell, Partner & Head of Software at GP Bullhound, said: “Several trends emerged across the software space in Q3. Machine Learning is starting to play a larger role in the SaaS space; chatbots are increasing in popularity as businesses adopt 24/7 customer support; and Earned Wages Access companies bridge the gap between work and pay, given the tighter job market and shrinking workforces. We are also seeing API-centric security solutions gaining rapid adoption, and vertical SaaS solutions rising in popularity due to their cost-saving solutions for businesses.”

Matt Stamp, Partner in the Software team at GP Bullhound, commented: “The broader macroeconomic and geopolitical environment has continued to influence the market in Q3. Public markets continue to be shut to IPOs and while M&A and private placement volumes are down quarter on quarter, 2022 YTD numbers are higher than any year aside from 2021. The significant dry powder, that both investors and strategics have accumulated, is focused on top-quartile investment opportunities, buy-outs, and funding consolidation strategies across multiple subsectors. We expect M&A-driven market consolidation to be a key theme in Q4, in addition to the ongoing trend of public to private transactions.”

Download GP Bullhound’s Q3 2022 Global Software Market Perspectives here.

DIGITAL SERVICES

Oliver Schweitzer and Ravi Ghedia, Executive Directors at GP Bullhound, said: “We have highlighted various key and growing Digital Services trends in Q3. Privacy pressures are driving M&A and investments in adtech towards innovative cookieless technologies, such as contextual advertising. Latin American countries are seeing significant M&A activity, as rapid technology adoption in the region leads to increased demand for digital services providers. Lastly, as industry players seek to supercharge their customer acquisition processes, there is growing demand for innovation in UX design to stay ahead of competition. Q3 saw a reduction in deal activity versus the last 2 years, in response to macroeconomic factors in the market.”

Download GP Bullhound’s Q3 2022 Global Digital Services Market Perspectives here.

FINTECH

Claudio Alvarez, Partner at GP Bullhound, commented: “Several key trends continued to emerge in Q3 2022. India has solidified itself as a leading fintech hub, with over 4k fintech companies and more than 20 fintech unicorns. Further innovation and adoption in the space are expected across the country. Crypto wallets are bridging the gap between consumers and blockchain, with the opportunity for a market-leading wallet wide open. Lastly, behavioural authentication continues its rise, with growing numbers of users recognising its potential against online banking fraud. On the dealmaking side, fintech activity remained muted due to continued macroeconomic uncertainty, but category leaders like Klarna and wefox continued to raise capital, despite the difficult fundraising environment.”

Download GP Bullhound’s Q3 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 Q3. Competition for the ownership of sports rights is heating up among Big Tech, as high viewership traffic promises new subscribers in the future. We are also seeing non-gaming apps surpass gaming apps for the first time this year. Lastly, streaming companies continue thinking of ways to reinvent themselves through ad-supported models and new original content. On the dealmaking side, digital media remains active, with a healthy pace of investments in the sector as global consumption of digital media increases.”

Download GP Bullhound’s Q3 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 Q3. Gamification in education is continuing to surge, with the game-based learning market likely to reach $62bn by 2030. Enthusiasm from educators and learners alike is driving the space. Retailers continue to personalise shopping experiences for consumers, as best-in-class companies see a 25% uptick in revenue from personalisation strategies. Lastly, trading in the agriculture sector is increasingly transitioning online, as farmers benefit from greater visibility and consumers take advantage of more precise product information. On the M&A side, acquisitions by Shopify and Prosus stood out in an otherwise slow quarter. Investors and buyers are taking advantage of lower valuations to target high quality businesses at attractive prices.”

Download GP Bullhound’s Q3 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.