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The State of the SaaS Capital Markets: A Look Back at 2023 and Look Forward to 2024

Predictions on the Trends Shaping the SaaS Industry

The start of the year means it’s time to reflect on the activity of 2023 and dig into data to spot the trends, challenges and opportunities for the year ahead. As software specialist investors, this year we decided to uplevel our outlook through a thorough analysis of the state of the enterprise SaaS markets – both public and private, and the exit environment. 

We are excited to share our inaugural report on The State of the SaaS Capital Market, which covers investment trends, valuations and valuation drivers, as well as exit activity not only in 2023, but also in the context of the investment environment over the last decade. We then combine the recent trendlines with the longer historical perspective to develop our top 10 predictions for 2024.

Check back with us at mid-year to see how we’re tracking against our predictions. In the meantime, let us know what you think about the report and our predictions – we'd love to hear from you about what you think we got right and what we may have missed. 

“We expect total funding to grow back into the pre-pandemic trendline (+5-10% overall growth) as investors with ample dry powder incrementally increase deal pacing.  We believe enterprise software (including, of course, Gen AI-fueled business models) will continue to be a big driver of total VC investment in 2024.”
— Steve Abbott, Partner at Sapphire Ventures

Download the report today to discover how our insights from the past year are set to shape the year ahead.