Sapphire report – The State of the SaaS Capital Markets: A Look Back at2023 and Look Forward to 2024

Top 10 predictions for 2024:

1. VC funding will grow incrementally
2. We will return to a “growth mindset” in software…
3. …but not to “growth at all costs” as we enter a second “Year of Efficiency”
4. Flat and down rounds will continue to rise
5. We are finally past “peak unicorn”
6. Funding for Generative AI will continue at a strong pace, but investors will be more discerning.
7. Public software revenue multiples will continue to expand incrementally
8. In M&A, deal volume will pick up with small-to-medium sized deals in the starring role…
9. …and private-to-private M&A will increase as stronger players consolidate positions
10. Software IPOs will become a thing again –but the real action happens in 2025