2024 SaaS Industry Mid-Year Report

The State of SaaS

SaaS and the overall market faced significant challenges in 2023 — rising interest rates, inflation, geopolitical conflicts, and bank failures shocked nearly every industry. However, incredible market resilience in 2023 Q4 generated great momentum going into 2024. With interest rates stabilized and Private Equity dry powder remaining near record levels, investors are looking for creative ways to deploy capital. The price of capital has made larger deals less reliable. Instead, PE firms are looking to smaller, middle-market dealmaking at a higher volume. The growing adoption and integration of AI tools drive excitement across industries. Strategic acquisitions take the stage as tech giants seek established, proprietary technologies to affirm market leads. Still, increasing regulations and antitrust scrutiny are taking shape across the globe. Navigating these shifts will require agility from new enterprises and investors alike.

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