Enterprise Software Snapshot

This short report explores the biggest shifts in the Enterprise Software space over the past year, with a focus on VC funding trends and what that means for founders. In addition to the rise of venture debt, it tells a story of resilience, as founders seek new ways to fund their growth under increased investor scrutiny. With AI and fintech both attracting significant VC investment, and a number of megarounds, we see cause for cautious optimism.
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This short report explores the biggest shifts in the Enterprise Software space over the past year, with a focus on VC funding trends and what that means for founders, and the rise of venture debt.

Key takeaways

1

VC deals are down, but investment is up

The flight to quality continues, with almost two thirds of funding going to Series C+.

2

Megarounds give AI and Fintech momentum

Interest in AI remains strong, but fintechs have also attracted significant VC investment

3

Debt is becoming more prominent

40% of deals now include a debt component as founders seek new structures to fund their growth.

As this short report highlights, Enterprise Software remains one of the most dynamic, resilient areas of the innovation economy – but it is not immune to the impact of broader economic trends. While there is enough evidence of growth to be cautiously optimistic, it’s clear from the data that investors continue to put opportunities under extra scrutiny. However, the resilience and adaptability shown by the SaaS community bode well for the future of this exciting area.

Jean Laurent Pelissier | Managing Director, HSBC Innovation Banking UK

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