EMERGING TECH RESEARCH

Launch Report:
Enterprise SaaS
VC trends and industry overview

Q1 REPORT PREVIEW
The full report is available through
2023 the PitchBook Platform.
Contents
Executive summary 3 Institutional Research Group
Analysis
Vertical overview 4
Derek Hernandez Senior Analyst, Emerging Technology
Q2 2022-Q1 2023 timeline 7
[email protected]
Enterprise SaaS landscape 8 [email protected]

Enterprise SaaS VC ecosystem market map 9 Data

Alyssa Williams Data Analyst

VC activity 11

Segment overview 14 Publishing

Customer relationship management (CRM) 15 Report designed by Joey Schaffer, Julia Midkiff & Megan Woodard

Enterprise resource planning (ERP) 24 Published on May 19, 2023

Supply chain management (SCM) 33

Analytic platforms (AP) 41

Knowledge management systems (KMS) 49

Other application software (OAS) 57

Appendix 65

Q1 2023 Launch Report: Enterprise SaaS CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 2

 Q2 2022-Q1 2023 timeline Q1 VC deal count summary

June 8, 2022 November 30, 2022 March 15, 2023

363
total deals
Oracle closes its acquisition of Cerner for ChatGPT launches with massive success, Stripe raises $6.5 billion at a valuation of
$28.3 billion to expand into major health crossing 1 million users in five days. $50.0 billion, down significantly from $95.0
-8.6%

VC deal
systems and leverage its own database Major disruptions are predicted across all billion in March 2021. The lower valuation is

News
M&A

technology. This continues the competition enterprise SaaS segments, exemplified by indicative of the IPO exit remaining largely QoQ growth
in healthcare platforms, including Microsoft’s cumulative $13 billion invested unavailable in 2023 and its considerable
Microsoft’s $19.7 billion acquisition of in OpenAI as well as major pivots and strain on valuations. -42.7%
Nuance, which closed in March 2022, and rollouts by Google, Meta, and others. YoY growth
a PE leveraged buyout of Athenahealth for
$17.0 billion, which closed in January 2022.
-24.7%
TTM growth
Jun 1

Jul 1

Aug 1

Sep 1

Oct 1

Nov 1

Dec 1

Jan 1

Feb 1

Mar 1

Mar 31
Q1 VC deal value summary

January 4, 2023
August 15, 2022 March 12, 2023 $13.9B
Amazon confirms that 18,000 of its
Aptly named Rubicon becomes the last Qualtrics announces it will be acquired for total deal value
employees will be laid off, later increasing

Take-private
company in our enterprise SaaS segment to $12.5 billion in a take-private buyout by
this figure to 27,000 employees. Salesforce
18.5%
VC exit

go public at a valuation above $1 billion with Silver Lake and CPP Investments. Along with
News

cuts 10% of its workforce—around 8,000

a $1.7 billion SPAC deal. Since then, Rubicon’s Coupa and Citrix, Qualtrics is the latest of
employees—on the same day. From QoQ growth
enterprise value has decreased by more several companies being acquired by PE
2022 into 2023, effectively every leading
than 80%, in line with many recent exits. firms in multibillion dollar deals despite
enterprise SaaS vendor is affected by
persistently high costs of capital. -33.5%
layoffs, including Microsoft, Google, SAP,
YoY growth
Meta, Stripe, and Zoom.

-31.0%
TTM growth

Q1 2023 Launch Report: Enterprise SaaS CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 7

Enterprise 5

SaaS
landscape
2

Customer relationship
1 management
1
2 Enterprise resource planning

3 Supply chain management

4 Analytic platforms 4

5 Knowledge management systems

6 Other application software

3

Q1 2023 Launch Report: Enterprise SaaS CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 8

VC activity
Despite a challenging environment throughout 2022, the enterprise SaaS sector remained strong
across both deal count and deal value, second only to the blowout of 2021. In 2022, enterprise Enterprise SaaS VC deal activity
SaaS companies raised $62.4 billion across 2,093 deals, down just 18.4% in deal value and 11.9% in
deal count, despite a night-and-day shift in the markets from 2021, which saw $76.5 billion raised
2,377
across 2,377 deals. Importantly, 2022 totals eclipsed the next-highest amounts prior to 2021,
with 29.6% more deals and 83.4% greater deal value than the prior record set in 2020. Overall, 2,093

steady deal count and deal value persisted in 2022 despite rising interest rates, ongoing COVID-19
disruptions, market volatility, and major geopolitical eruptions. We expect overall deal count and
1,615
value to remain resilient in 2023 despite our expectation for continued headwinds.
1,565

1,334
Notably, the 2022 deal count and deal value were heavily skewed to ERP, which held 36.2% of
the deal count and 37.1% of the deal value, and CRM, which held 28.0% of the deal count and
28.1% of the deal value. Together, these segments represent almost two-thirds of the total of
each metric. The next-largest segments were AP, with 14.9% of the deal count and 11.4% of the
deal value, and SCM, with 7.4% of the deal count and 10.1% of the deal value. The remaining two
segments contributed mid-single digits to the overall count and value, with KMS holding 8.6% of
the deal count and 5.4% of the deal value and OAS holding 5.0% of the deal count and 7.9% of the 363

deal value. We anticipate enterprises will continue to emphasize their revenue-generating and
customer-focused segments, notably the CRM segment, with additional investments to continue
$19.6 $29.5 $34.0 $76.5 $62.4 $13.9
across our manufacturing & operations subsegment of ERP, especially in solutions specific to
2018 2019 2020 2021 2022 2023*
certain verticals, such as medical technology, insurance technology, and agricultural technology.
Deal value ($B) Deal count

Source: PitchBook • Geography: US • *As of March 31, 2023

Q1 2023 Launch Report: Enterprise SaaS CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 11

Customer relationship management (CRM)
Overview marketing, 3) digital and adtech, 4) B2B marketing automation, 5) loyalty management, and 6)
digital asset management.
CRM software automates and optimizes the customer-facing operations of a business. CRM spans
the lifetime of a customer, from discovering new prospects and marketing to them, to securing • Sales: The lifeblood of every enterprise is its ability to execute sales. CRM software delivers
transactions through sales, to customer success and engagement through ongoing services and sales execution, enablement, and force automation software. These softwares enable existing
support. Salesforce is the market leader and an exemplary CRM vendor. salesforces within an enterprise, especially in conjunction with performance management
technologies. In addition, partner relationship management software enables and leverages
While CRM technology solutions may be industry-specific, most are sector-agnostic. These third-party sellers that drive indirect sales channels. Digital optimization software for pricing,
solutions scale by working to address universal business challenges, such as sales and marketing. quoting, and product configuration also provides another leverage point for many enterprises.
Certain technologies provide specialized solutions depending on the enterprise and/or customer Finally, customer success management—the engagement of customers to ensure their
base. Every solution nonetheless aims to maximize the lifetime value of each customer by serving desired outcomes—has experienced outsize growth in recent years as SaaS and subscription
and deepening the relationship with the enterprise. revenue grows, especially in relation to opportunities to upsell and cross-sell, along with
attrition management. Examples of sales software offerings include: 1) salesforce automation,
The five subsegments within CRM address common demands across enterprises. These enablement, and performance management; 2) partner relationship management; 3) price
subsegments include: optimization; 4) recurring revenue management; and 6) customer success.

• Marketing: Most enterprises begin their customer lifecycle with direct and indirect marketing • Digital commerce: With the explosion of e-commerce through Web 2.0 developments and
to prospects in an effort to develop enough interest to create ongoing clients. Marketing is a deployments of 4G and 5G enabling constant connectivity with these platforms, digital
vital business effort that operates across numerous channels, including digital and advertising commerce has become a distinct, meaningful, and pervasive touchpoint with clients. Simply
technology (adtech), B2B, and account-specific channels. These often address distinct customer put, digital commerce is the trade between buyers and sellers enabled by digital technologies.
segments or attempt to create multiple touchpoints across diverse mediums. In addition, loyalty To this end, enterprises are employing platforms to create an interactive self-service medium
management involves marketing to current clients and may overlap with ongoing customer to access salable goods, creating a digital storefront. In addition, these platforms often employ
service and support efforts. We include the management of digital assets (videos, infographics, sophisticated digital search technologies to meet specific customer needs. Finally, enterprises
and demos) used for internal and external marketing purposes in this subsegment as well. may create their own digital marketplaces—exclusive of third-party marketplaces, such as
Examples of marketing software offerings include: 1) multichannel marketing, 2) account-based Amazon, eBay, and Alibaba—to invite other sellers to service end customers, either B2B or B2C.

Q1 2023 Launch Report: Enterprise SaaS CONFIDENTIAL. NOT FOR REDISTRIBUTION. PG 15

 PitchBook Data, Inc.
John Gabbert Founder, CEO

Nizar Tarhuni Vice President, Institutional Research and Editorial

Paul Condra Head of Emerging Technology Research

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