Certinia’s Post

We've recently unveiled a must-see list of the most active PE firms setting their signts on SaaS companies. Whether you're a startup looking for investment, a professional navigating the SaaS space, or simply curious about the latest trends in tech investment, this list is gold. I'd love to hear your thoughts!

Check out my latest article on the emergence of the Strategic CFO💡 At Inovia Capital, we are excited by the opportunity to back entrepreneurs building the next-generation of tools to better serve this key role. Get in touch! 🚀 Read the full article here: https://lnkd.in/ewu8sb8J #cfo #fintech #saas

🌟 In a compelling new article featured in Finance Derivative, our VP Phoebe Kitchen delves into the evolving role of the Strategic CFO. She insightfully discusses how technology and next-gen tools are critical in this era of transformation, a theme that resonates with Inovia's focus on empowering financial leaders with innovative technology! 👀 Don't miss this thought-provoking read: https://lnkd.in/eKqKyzGb #CFO #FinTech #SaaS #CompanyBuilders

Vista Equity Partners, an investment firm, and Warburg Pincus LLC, a global growth investor, agreed to acquire Redwood Software, an international company providing job scheduling, report distribution and SAP solutions, from Turn/River Capital, a software investment firm. Financial terms were not disclosed. "Redwood's easy-to-use and highly integrated automation solutions help enterprises automate the critical workflows which power their core commercial and IT operations. We are excited to partner with Redwood and Warburg Pincus to deliver even more customer value and efficiency as the demand for automation solutions capable of spanning multiple data, application and cloud environments continues to accelerate," Steven White, Vista Equity Partners Managing Director. Redwood Software (led by Kevin Greene) is advised by Goldman Sachs, Orrick, Herrington & Sutcliffe LLP and Next PR. Warburg Pincus is advised by Cleary Gottlieb Steen & Hamilton LLP. Vista Equity Partners is advised by Kirkland & Ellis. Turn/River is advised by Orrick, Herrington & Sutcliffe LLP. Link to the article in the comments. #MergersAcquisitionsDivestitures #Software #PrivateEquity

Five considerations for software private equity in 2024: As we reflect on the past half decade of software investing, we’ve seen an unprecedented series of ebbs and flows driven by a volatile macro environment. While the last year or so was challenged (following a few years of breakneck intensity and investment), investors are looking at a more nuanced, more reflective but ultimately optimistic investing environment in software ahead, given the significant volume of dry powder still available, the re-opening of spend by CIOs, and a re-opening of processes aided by re-balanced valuations. We’ve identified five key considerations to keep in mind as software investors prepare to engage with this new set of circumstances. 1. Private markets slow down in software creates opportunity 20 years of continued multiples expansion is now slowing down, and PE multiples in software are dropping significantly after years of being “flat.” These factors, paired with a challenging deal environment and previously unrelenting valuations, have let dry powder pile up. 2. GenAI driving waves of early disruption across software segments GenAI continues to be seen as a transformative factor in software – enabling both disruption and innovation, with an estimated $250B of potential GenAI application spend. In the near term, traction will impact certain key domains, mostly high impact software categories likes sales and service tech will likely see a valuation boost from RFP buzz. 3. Software buyers expect to increase spend – with caveats Overall, expect an increase in spend for software, accelerated by an increased dependence on and use of software to realize efficiency gains. That said, not all categories are equal – expect outsize spend increases in sales tech and data, while HCM and finance remain more stagnant. Vendor consolidation should remain the norm, except in areas of high innovation (e.g., data). 4. Reset opportunities for investors to rethink their software investing approach… A delay in capital deployment from a slow 2023 is leading to accelerated sales processes for “long-in-tooth” hold periods. Expect continued fragmentation within certain domains (e.g., data) that will create headroom for thematic investments – with investors also exploring long term bets and carveouts or take-privates 5. …and shape the last mile of value creation for software companies Companies exploring exit in the next 12-36 months could consider proactively driving portfolio company improvement initiatives. There is a wide disparity in realized value creation for software companies, with some companies creating 5-10X+ improvement of enterprise value through targeted revenue, M&A and operational improvements. We’re happy to share additional materials on this topic, including an overview of our unique expertise build, diligence modules and software specific tools, portco value creation levers, domain perspectives and more.

Five considerations for software private equity in 2024: As we reflect on the past half decade of software investing, we’ve seen an unprecedented series of ebbs and flows driven by a volatile macro environment. While the last year or so was challenged (following a few years of breakneck intensity and investment), investors are looking at a more nuanced, more reflective but ultimately optimistic investing environment in software ahead, given the significant volume of dry powder still available, the re-opening of spend by CIOs, and a re-opening of processes aided by re-balanced valuations. We’ve identified five key considerations to keep in mind as software investors prepare to engage with this new set of circumstances. 1. Private markets slow down in software creates opportunity 20 years of continued multiples expansion is now slowing down, and PE multiples in software are dropping significantly after years of being “flat.” These factors, paired with a challenging deal environment and previously unrelenting valuations, have let dry powder pile up. 2. GenAI driving waves of early disruption across software segments GenAI continues to be seen as a transformative factor in software – enabling both disruption and innovation, with an estimated $250B of potential GenAI application spend. In the near term, traction will impact certain key domains, mostly high impact software categories likes sales and service tech will likely see a valuation boost from RFP buzz. 3. Software buyers expect to increase spend – with caveats Overall, expect an increase in spend for software, accelerated by an increased dependence on and use of software to realize efficiency gains. That said, not all categories are equal – expect outsize spend increases in sales tech and data, while HCM and finance remain more stagnant. Vendor consolidation should remain the norm, except in areas of high innovation (e.g., data). 4. Reset opportunities for investors to rethink their software investing approach… A delay in capital deployment from a slow 2023 is leading to accelerated sales processes for “long-in-tooth” hold periods. Expect continued fragmentation within certain domains (e.g., data) that will create headroom for thematic investments – with investors also exploring long term bets and carveouts or take-privates 5. …and shape the last mile of value creation for software companies Companies exploring exit in the next 12-36 months could consider proactively driving portfolio company improvement initiatives. There is a wide disparity in realized value creation for software companies, with some companies creating 5-10X+ improvement of enterprise value through targeted revenue, M&A and operational improvements. We’re happy to share additional materials on this topic, including an overview of our unique expertise build, diligence modules and software specific tools, portco value creation levers, domain perspectives and more.

Five considerations for software private equity in 2024: As we reflect on the past half decade of software investing, we’ve seen an unprecedented series of ebbs and flows driven by a volatile macro environment. While the last year or so was challenged (following a few years of breakneck intensity and investment), investors are looking at a more nuanced, more reflective but ultimately optimistic investing environment in software ahead, given the significant volume of dry powder still available, the re-opening of spend by CIOs, and a re-opening of processes aided by re-balanced valuations. We’ve identified five key considerations to keep in mind as software investors prepare to engage with this new set of circumstances. 1. Private markets slow down in software creates opportunity 20 years of continued multiples expansion is now slowing down, and PE multiples in software are dropping significantly after years of being “flat.” These factors, paired with a challenging deal environment and previously unrelenting valuations, have let dry powder pile up. 2. GenAI driving waves of early disruption across software segments GenAI continues to be seen as a transformative factor in software – enabling both disruption and innovation, with an estimated $250B of potential GenAI application spend. In the near term, traction will impact certain key domains, mostly high impact software categories likes sales and service tech will likely see a valuation boost from RFP buzz. 3. Software buyers expect to increase spend – with caveats Overall, expect an increase in spend for software, accelerated by an increased dependence on and use of software to realize efficiency gains. That said, not all categories are equal – expect outsize spend increases in sales tech and data, while HCM and finance remain more stagnant. Vendor consolidation should remain the norm, except in areas of high innovation (e.g., data). 4. Reset opportunities for investors to rethink their software investing approach… A delay in capital deployment from a slow 2023 is leading to accelerated sales processes for “long-in-tooth” hold periods. Expect continued fragmentation within certain domains (e.g., data) that will create headroom for thematic investments – with investors also exploring long term bets and carveouts or take-privates 5. …and shape the last mile of value creation for software companies Companies exploring exit in the next 12-36 months could consider proactively driving portfolio company improvement initiatives. There is a wide disparity in realized value creation for software companies, with some companies creating 5-10X+ improvement of enterprise value through targeted revenue, M&A and operational improvements. We’re happy to share additional materials on this topic, including an overview of our unique expertise build, diligence modules and software specific tools, portco value creation levers, domain perspectives and more.

Five considerations for software private equity in 2024: As we reflect on the past half decade of software investing, we’ve seen an unprecedented series of ebbs and flows driven by a volatile macro environment. While the last year or so was challenged (following a few years of breakneck intensity and investment), investors are looking at a more nuanced, more reflective but ultimately optimistic investing environment in software ahead, given the significant volume of dry powder still available, the re-opening of spend by CIOs, and a re-opening of processes aided by re-balanced valuations. We’ve identified five key considerations to keep in mind as software investors prepare to engage with this new set of circumstances. 1. Private markets slow down in software creates opportunity 20 years of continued multiples expansion is now slowing down, and PE multiples in software are dropping significantly after years of being “flat.” These factors, paired with a challenging deal environment and previously unrelenting valuations, have let dry powder pile up. 2. GenAI driving waves of early disruption across software segments GenAI continues to be seen as a transformative factor in software – enabling both disruption and innovation, with an estimated $250B of potential GenAI application spend. In the near term, traction will impact certain key domains, mostly high impact software categories likes sales and service tech will likely see a valuation boost from RFP buzz. 3. Software buyers expect to increase spend – with caveats Overall, expect an increase in spend for software, accelerated by an increased dependence on and use of software to realize efficiency gains. That said, not all categories are equal – expect outsize spend increases in sales tech and data, while HCM and finance remain more stagnant. Vendor consolidation should remain the norm, except in areas of high innovation (e.g., data). 4. Reset opportunities for investors to rethink their software investing approach… A delay in capital deployment from a slow 2023 is leading to accelerated sales processes for “long-in-tooth” hold periods. Expect continued fragmentation within certain domains (e.g., data) that will create headroom for thematic investments – with investors also exploring long term bets and carveouts or take-privates 5. …and shape the last mile of value creation for software companies Companies exploring exit in the next 12-36 months could consider proactively driving portfolio company improvement initiatives. There is a wide disparity in realized value creation for software companies, with some companies creating 5-10X+ improvement of enterprise value through targeted revenue, M&A and operational improvements. We’re happy to share additional materials on this topic, including an overview of our unique expertise build, diligence modules and software specific tools, portco value creation levers, domain perspectives and more.

Five considerations for software private equity in 2024: As we reflect on the past half decade of software investing, we’ve seen an unprecedented series of ebbs and flows driven by a volatile macro environment. While the last year or so was challenged (following a few years of breakneck intensity and investment), investors are looking at a more nuanced, more reflective but ultimately optimistic investing environment in software ahead, given the significant volume of dry powder still available, the re-opening of spend by CIOs, and a re-opening of processes aided by re-balanced valuations. We’ve identified five key considerations to keep in mind as software investors prepare to engage with this new set of circumstances. 1. Private markets slow down in software creates opportunity 20 years of continued multiples expansion is now slowing down, and PE multiples in software are dropping significantly after years of being “flat.” These factors, paired with a challenging deal environment and previously unrelenting valuations, have let dry powder pile up. 2. GenAI driving waves of early disruption across software segments GenAI continues to be seen as a transformative factor in software – enabling both disruption and innovation, with an estimated $250B of potential GenAI application spend. In the near term, traction will impact certain key domains, mostly high impact software categories likes sales and service tech will likely see a valuation boost from RFP buzz. 3. Software buyers expect to increase spend – with caveats Overall, expect an increase in spend for software, accelerated by an increased dependence on and use of software to realize efficiency gains. That said, not all categories are equal – expect outsize spend increases in sales tech and data, while HCM and finance remain more stagnant. Vendor consolidation should remain the norm, except in areas of high innovation (e.g., data). 4. Reset opportunities for investors to rethink their software investing approach… A delay in capital deployment from a slow 2023 is leading to accelerated sales processes for “long-in-tooth” hold periods. Expect continued fragmentation within certain domains (e.g., data) that will create headroom for thematic investments – with investors also exploring long term bets and carveouts or take-privates 5. …and shape the last mile of value creation for software companies Companies exploring exit in the next 12-36 months could consider proactively driving portfolio company improvement initiatives. There is a wide disparity in realized value creation for software companies, with some companies creating 5-10X+ improvement of enterprise value through targeted revenue, M&A and operational improvements. We’re happy to share additional materials on this topic, including an overview of our unique expertise build, diligence modules and software specific tools, portco value creation levers, domain perspectives and more.

Five considerations for software private equity in 2024: As we reflect on the past half decade of software investing, we’ve seen an unprecedented series of ebbs and flows driven by a volatile macro environment. While the last year or so was challenged (following a few years of breakneck intensity and investment), investors are looking at a more nuanced, more reflective but ultimately optimistic investing environment in software ahead, given the significant volume of dry powder still available, the re-opening of spend by CIOs, and a re-opening of processes aided by re-balanced valuations. We’ve identified five key considerations to keep in mind as software investors prepare to engage with this new set of circumstances. 1. Private markets slow down in software creates opportunity 20 years of continued multiples expansion is now slowing down, and PE multiples in software are dropping significantly after years of being “flat.” These factors, paired with a challenging deal environment and previously unrelenting valuations, have let dry powder pile up. 2. GenAI driving waves of early disruption across software segments GenAI continues to be seen as a transformative factor in software – enabling both disruption and innovation, with an estimated $250B of potential GenAI application spend. In the near term, traction will impact certain key domains, mostly high impact software categories likes sales and service tech will likely see a valuation boost from RFP buzz. 3. Software buyers expect to increase spend – with caveats Overall, expect an increase in spend for software, accelerated by an increased dependence on and use of software to realize efficiency gains. That said, not all categories are equal – expect outsize spend increases in sales tech and data, while HCM and finance remain more stagnant. Vendor consolidation should remain the norm, except in areas of high innovation (e.g., data). 4. Reset opportunities for investors to rethink their software investing approach… A delay in capital deployment from a slow 2023 is leading to accelerated sales processes for “long-in-tooth” hold periods. Expect continued fragmentation within certain domains (e.g., data) that will create headroom for thematic investments – with investors also exploring long term bets and carveouts or take-privates 5. …and shape the last mile of value creation for software companies Companies exploring exit in the next 12-36 months could consider proactively driving portfolio company improvement initiatives. There is a wide disparity in realized value creation for software companies, with some companies creating 5-10X+ improvement of enterprise value through targeted revenue, M&A and operational improvements. We’re happy to share additional materials on this topic, including an overview of our unique expertise build, diligence modules and software specific tools, portco value creation levers, domain perspectives and more.