Categories: Blackpeak Capital Tech Market Update
Blackpeak Technology Market Update October 2026
Blackpeak are pleased to present our latest Technology sector update report, with market data through to 30 September 2026 (see link below).
The early recovery flagged in July has yet to take hold in ANZ, while US software continued to rebound, widening the valuation gap between the two markets. Private capital and M&A remain selective, with investors and acquirers concentrating on scaled, category-leading assets. Whilst activity remains subdued, we expect the valuation gap to close and activity to lift. Key themes include:
- ANZ listed tech continues to lag, down ~34% over the last 12 months against a broadly flat ASX 200 – with the improvement seen in the June quarter reversing over the September quarter, led by a further sell-off in SaaS
- ANZ SaaS valuations have reset to a median 2.3x EV/NTM revenue (from 7.1x twelve months ago), with WiseTech and Xero each down over 60% as AI disruption concerns weigh on application software
- US software has rebounded over the last 3-6 months, though gains remain concentrated in infrastructure and security (Infra & Cloud, DevOps and Cyber) while FinTech and Vertical HCIT have fallen
- Private capital is selective and concentrated – raising has held at ~A$1.2–1.4bn p.a. since FY23, with Heidi’s A$480m raise the standout of FY27 to date, offshore funds increasingly leading the larger rounds and appetite strongest for AI-enabled vertical software
- M&A value dropped to $6.9bn in FY26 (~80% drop) although off a high base in FY25 that included the ~A$24bn Airtrunk sale. Global strategics continue to transact on quality assets including Eucalyptus (Hims & Hers), CyberCX (Accenture) and Qoria (Aura)