State of Software-as-a-Service
H2 2022 SaaS Report
Key SaaS trends
Amount of global VC dry powder ready for deployment
Projected global IT spending in 2023 — a 6% increase
Increase in market chatter about down rounds since 2019
Still-steady deal activity, softening valuations and a renewed interest in debt financing: key trends defining the SaaS venture landscape.
Softening valuations: Which areas are shielded?
The early-stage remains resilient as the later-stage sees softening given its stronger connection to public comparables.
Subsectors such as cyber as well as startups located on the urban coasts are continuing to command a premium, with median valuation step-ups well above the rest.
Will down rounds see an upturn?
While our analysis has yet to register a major uptick in the number of down rounds, market chatter reflects a growing number of startups discussing flat or down-round financing.
Debt financing requests are on the rise as startups begin to hedge against a tougher equity market heading into 2023.
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Managing Director, SVB
Alex is the Director of Silicon Valley Bank’s Enterprise Software team in San Francisco.