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Categories: AGC Partners Insights

AGC PARTNERS INSIGHTS: PRIVATE EQUITY TECHNOLOGY MARKET REVIEW – FEBRUARY 2020

With AUMs growing by nearly $400B annually and on track to surpass $5T by 2023, private equity has been the fastest growing asset class for some time now. As a subset, tech-focused PEs have been a strong driver of that growth. Tech PEs have become the power player in the global tech world competing toe-to-toe with the strategic community and rocking the landscape across the hundreds of technology markets and thousands of companies. They now account for 31% of all deal flow, up from 9% at the beginning of the decade.

The post great recession generation of tech PE funds deserves the mantra of “buy and build,” and our analysis bears that out. The top Tech PE firms seek out and pay up for platform companies that have the size, market leadership, and management on which they can build. Over the two year period tracked, the top five firms alone combined for 369 add-ons and 83 platform acquisitions, a roughly 4 to 1 split and multiplier effect. These are the firms perfecting the PE “buy and build” formula, generating outsized returns and new fund closings in kind.

In this report, AGC identify what they believe to be the core of the Tech PE world, with firms ranked by number of deals, dollar value, fund formation and other key metrics.

Click to download AGC’s report: AGC-Global-PE-Tech-Review-Feb-2020

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AGC PARTNERS INSIGHTS: THE ABCS OF SMBS

Attached is AGC Partners’ Insight report “The ABCs of SMBs.” This thought piece explores the market for software and services selling into small and midsize businesses (SMB) globally, and the technology providers and strategies used to best penetrate this underserved and rapidly growing market. The low-cost ease of use SaaS delivery model has broken open the SMB market, generating $380 billion in software spend.

SMB is a different animal than the large enterprise market, and requires a radically different go-to-market strategy. A watered-down version of an enterprise offering is almost guaranteed to fail. Software vendors need to maintain a laser focus on unit economics and a low-cost approach to sales in order to minimize customer acquisition costs and churn, and maximize volumes.

Click to download AGC’s report – ABCs-of-SMBs-12.12.19-Condensed-Version

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AGC PARTNERS INSIGHTS: THE FUTURE OF RESTAURANT TECHNOLOGY

Attached is AGC Partners’ Insight report on the future of restaurant technology.

Entitled “The Future of Restaurant Technology,” this piece explores how technology is positioned to transform this $900 billion sales industry, historically one of the most labor intensive sectors of the U.S economy. An extended economic recovery, low unemployment rate, and continued rise of millennials as the largest demographic in the workplace are factors driving strong restaurant spending. Yet, razor thin profit margins and unique challenges restaurants face require purpose built solutions to cut costs, gain efficiencies, and increase visibility. These factors have created a multi-billion-dollar market for restaurant management software, which is growing at double digits. Online ordering and migration to next generation POS to facilitate ordering, payment processing, customer interaction, marketing, sales tracking and order management is driving much of the growth. This report takes a closer look into the market as well as companies in the ecosystem, M&A and private placement activity.

Click to download AGC’s report – AGC-Restaurant-Tech-Nov-2019

 

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AGC PARTNERS INSIGHTS: GENOMICS DATA MANAGEMENT

Attached is AGC Partners’ Insight report on Genomics Data Management.

AGC’s research on the market for Genomics Data Management Software can be found in our latest Insight report, which you can request to download using the form below. It discusses how the analysis, integration and interpretation of data from next-generation sequencing (NGS) technology poses challenges to researchers, and has given way to the market opportunities for Genomics Data Management Software. Other topics included in the report are listed below.

– Genomics Market Size & Growth Forecasts
– Company Landscape
– Problems & Solutions With Interpreting Genomics Data
– Case Studies on the Impact of Genomics Data Management Software
– Major Challenges to the Market
– Publicly Traded Companies Overview
– Top Genomics Data Management Software M&A Deals, Financings, and Most Active Investors
– All Genomics Data Management Software M&A Transactions and Private Placement Transactions Since 2016

Click to download AGC’s report – AGC-Genomics-Data-Management-Oct-2019

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AGC PARTNERS INSIGHTS: LEGAL, COMPLIANCE & REGULATORY TECHNOLOGY – SEPTEMBER 2019

Attached is AGC Partners’ Insight report on legal, compliance and regulatory technology.

The global legal technology market, estimated at ~$4B in size, is poised for explosive growth in the years ahead as legal and compliance teams fully embrace digitalization and automation. Legal tech solutions revolve around real time access to data that keep litigation costs under budget and improve outcomes in cases litigated or agreements negotiated. At the frontier, other solutions are emerging to automate eDiscovery and Contract Management, mostly involving AI and ML technologies. Financing into private legal tech companies is now pouring in, while M&A activity has also seen a lockstep change to unprecedented levels over the last year. With over 180 companies identified in AGC’s Legal and Compliance Tech landscape, this industry is large and growing rapidly with many new startups forcing disruption of this traditional sector, and many public giants competing for pole position to build or buy the ecosystem.

Click to download AGC’s report – AGC-Legal-Compliance-Tech-Sep-2019

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AGC PARTNERS INSIGHTS: IOT AND THE ENTERPRISE – AUGUST 2019

Attached is AGC Partners’ Insight report on IoT and the Enterprise.

IoT is fast approaching critical mass in terms of units installed. By 2020, IoT is on track to surpass phones, laptops and tablets collectively as the largest category of connected devices. As this plays out, the Enterprise sets up as the next big leg of exciting growth in the extended IoT adoption wave, taking over from the Consumer and Industrial domains. Deployments are well under way with over 84% of enterprises expected to complete IoT implementations within the next two years. Meanwhile, private markets have begun to percolate with over 40 transactions occurring annually and hundreds of millions in deployed capital. With nearly 100 companies identified in AGC’s Enterprise IoT landscape, this report explores disruptive participants and trends in this rapidly emerging segment of IoT.

Click to download AGC’s report – AGC-Enterprise-IoT-Aug-2019

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AGC PARTNERS INSIGHTS: SUPPLY CHAIN SOFTWARE 2019 FIRST HALF MARKET UPDATE – AUGUST 2019

Attached is AGC Partners’ Insight report on the Supply Chain Software market. Supply chain is increasingly at the nexus of several transformative technology and business trends: Autonomous Vehicles, Internet of Things, digital twins, and automation and robotization of warehouses and distribution centers. As a result, supply chain and ERP remains robust as PE firms continue to invest in consolidation platforms for older technologies, which in turn continue to execute aggressive acquisition programs, and public companies are benefiting from continued growth in target markets and strong global equity capital markets. eProcurement / Spend Management M&A has been particularly active during the past 3 years with nearly 45 transactions, as ongoing consolidation in the sector is being driven by challenges such as Coupa and private equity players acquiring mid-market players. This report includes an overview of M&A and investment activity, current trends, and AGC’s landscape of companies in the ecosystem.

Click to download AGC’s report – AGC-Supply-Chain-Aug-2019

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AGC PARTNERS INSIGHTS: SECURITY FLASH REPORT – JULY 2019

Attached is AGC Partners Security Market Flash Report for 2Q 2019 with a focus on Zero Trust. Until recently, security models have been firewall-centric with the main focus on erecting a perimeter around the corporate network. However, this model has increasingly come under attack, calling for a a new paradigm wherein the concept of trust in a security context is dramatically altered. In a Zero Trust framework, all users are treated equally regardless of whether they sit inside or outside of the corporate firewall. What matters is who you are, not where you are. Put simply, identity becomes the new perimeter. Not surprisingly, there has been a burgeoning population of security vendors, both large and small, seeking to expand their offerings in the space, which has seen over $3.2B of disclosed M&A value in the last 12 months.

Click to download AGC’s report – AGC-Security-Market-July-2019

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AGC PARTNERS INSIGHTS: SECURITY FLASH REPORT – APRIL 2019

At RSA last month, a number of the big cloud service providers made high profile product announcements. Can this be just coincidence or is it the start of CSPs growing to dominate the cyber world? Given the increasing costs associated with a security breach, both companies and investors alike continue to invest heavily in the segment. Notably, 213 funding rounds raised a record $4.7B in 2018, and with an additional 59 rounds so far this year, the trend shows no sign of slowing. While the bottom of the cyber ecosystem is filling up, consolidation and exit opportunities are alive and well at the top. 154 M&A transactions were completed in 2018, with disclosed values exceeding $16.5B. Another $25B in value was transferred to the public markets by way of IPOs, providing an important source of liquidity for security investors. Which begs the question: who will be the lead consolidators and disruptors going forward?

Click to download AGC’s report – AGC-Partners-Security-Flash-Report-April-19

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AGC PARTNERS INSIGHTS: FINANCIAL TECHNOLOGY 2019 MARKET UPDATE

We have just completed a review of capital raising and M&A activity in the financial technology sector. 2018 was a blockbuster year for M&A activity across the FinTech space with 17 deals totaling $1B or more. 2019 is off to a ROARING start with 46 M&A deals and three alone representing $60.7B in value. On the capital raising side, 2018 continued the strong investment trend of 2017, with the lion’s share of investment going into FinTech disruptor models. Q1 points to another potential record year for investments in 2019. This report also includes an overview of current trends affecting the banking & capital markets, buy-side and insurance sectors, as well as our landscape of companies in the ecosystem.

Click to download AGC’s report – AGC-Fintech-Update-Apr-2019