Software Equity Group

We knew our clients were special, but this shows just how special they really are. Only a fraction of startups ever reach these milestones: 8.4% make it to $10M ARR 5.8% reach $15M ARR 3.5% reach $20M ARR 2.3% reach $25M ARR We're honored to work with founders who have already beaten the odds and to help guide them through what comes next. Because when you've built something this enduring, the next chapter deserves the same intention and care as the journey that got you here. (Data source: Arlo Gilbert, Chief Innovation Officer & Founder at Osano) #StartUp #ARR #Growth #Milestones

How many of these Residential for Rent software names do you recognize? The sector spans institutional multifamily, single-family rental, and purpose-built communities. SEG’s latest market map highlights the platforms transforming how residential rental portfolios are leased, lived in, and managed. Explore the full 2025 State of Residential for Rent Software Report to see the data and M&A trends behind this evolving CRE category. https://lnkd.in/gXuVyniX   #SaaS #MultiFamily #PropTech #MarketMap

September recorded 237 SaaS M&A transactions, bringing the YTD total to 2,019, up 28% YoY and keeping 2025 on track to be the most active SaaS M&A year ever. Momentum remained strong across verticals, led by Healthcare, Government, and Real Estate, with notable deals from Bending Spoons, OpenAI, Cadence, and Mitsubishi Electric. Swipe through for this month’s sector highlights and standout transactions, then explore the full list in our SEG SaaS M&A Deal Database™: https://lnkd.in/gJfRxeQk #MnA #SaaS #DealFlow #SaaSMnA

Periods of uncertainty create hesitation. They also create some of the best M&A opportunities.   We have seen it before: the public market correction in 2022, the regional bank failures in 2023, and now tariffs, rate changes, and geopolitical noise in 2025. Each event has caused many founders and boards to delay decisions about growth capital or potential exits.   However, history shows that when uncertainty clears, M&A activity returns quickly and often with greater intensity. Well-positioned companies, especially those with durable revenue and strong market fit, have maintained premium valuations even in turbulent periods. When confidence returns, pent-up demand from private equity and strategic buyers often sparks a surge in competitive deal activity, with the best assets commanding the strongest multiples. This time, there’s an added dynamic: AI is lowering barriers to entry. New competitors can acquire domain expertise and build sophisticated products faster than ever before. The market position that feels secure today may look very different tomorrow. For founders and CEOs, the message is clear: waiting for the “perfect” moment can backfire. The next wave of deals may come together quickly once confidence returns, and being prepared ahead of that shift is what separates companies that exit from those that achieve exceptional outcomes. #AI #AIInsights #MnA #Opportunities

Is your legacy worth rolling the dice on? Founders who accept the first inbound offer often leave money on the table. Buyer outreach is relentless. Dozens of firms email weekly, and it’s tempting to respond. But going it alone means giving away leverage before the game even starts. At SEG, we view it differently: every email is an invitation to build competitive tension, not to rely on a single offer. #MnA #InitalOffer #Interest

Churn rate is a metric that can make or break how investors value your business. But many SaaS companies are calculating it wrong. • Common pitfalls we see include:  • Looking only at customer count and ignoring the revenue impact  • Overlooking contraction when customers reduce spend but don’t leave  • Relying on a single churn number instead of tracking logo chur, gross dollar churn, and net dollar churn Each tells a different part of the story, and together they show buyers whether your growth is sustainable or at risk. #Churn #SaaSMetrics #Revenue #Impact

Most founders don’t start the M&A process thinking about ROI on their advisor. They think about the cost. And we get that. But the CEOs who’ve been through it before will tell you: The right advisor adds value and drives a higher valuation. For Jacquelyn Kung, hiring SEG was an investment. And in her words? It paid for itself — 10x over. Listen to Dr. Kung share her story:  https://lnkd.in/d_ZWxJxM #ClientStory #ROI #MnA #SaaS

Thanks to Paxton Earl, SEG Analyst and contributor to our upcoming 3Q25 Quarterly SaaS Report, for breaking down the Top 10 SaaS Deals last quarter. Q3 saw $61B in SaaS M&A, driven by the intersection of SaaS and AI. From Thoma Bravo’s $18B quarter to Blackstone’s acquisition of Enverus, buyers are targeting software platforms built on data, vertical depth, and AI capabilities. #Q3 #AI #AIInsights #SaaS

Curious how buyers & investors evaluate SaaS businesses? We pulled the top audience questions from our recent SaaS P&L Playbook webinar, which covered valuation, margins, and the KPIs that matter most. Swipe through for concise answers from experts Diamond Innabi & Ben Murray, and get practical tips to sharpen your metrics and boost buyer confidence. Watch the full session and dive deeper: https://lnkd.in/gcxeznir #Metrics #SaaS #Buyers #Investors

What if the real measure of AI’s impact isn’t headcount reduction but revenue growth without headcount growth? One metric investors and buyers are watching closely is revenue per employee. Historically, SaaS companies aimed for benchmarks like $200K per employee. But with agentic AI embedded directly into products, we may see companies deliver far more value to customers without adding the same proportional cost in people. This is about building AI features that let customers achieve 10X more without 10X complexity: analytics that write themselves, workflows that optimize in real time, products that learn and adapt independently. As those capabilities expand, companies can grow revenue dramatically without expanding headcount. At SEG, we believe the next generation of category leaders will integrate AI into their products in ways that fundamentally reset productivity expectations. When revenue per employee climbs because each customer can do more with your software, valuations and buyer interest will follow. #AI #AIImpact #Revenue #ArtificialIntelligence