May markets data: How did the equity, debt, and commodities markets fare last month? Our new Global Markets Snapshot tracks returns across a range of indexes and sectors. Read it here.
Early indicator: Want to see the data on how top VCs have shifted their early-stage bets from crypto to AI? Our Emerging Tech Indicator dives into our proprietary dataset. Download the report. | | | | | |
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| Semiconductor demand from generative AI leaders begins a gold rush in AI inference | | | Tech giants cannot get enough of customized AI semiconductors in their data centers, nor can the startups creating the future of AI models.
We have documented the non-linear positive relationship between additional computing resources and AI model quality over the past four years that drove the AI GPU market to reach $5.5 billion in 2022.
With the breakthrough in model quality from ChatGPT, cloud buyers and AI research labs accelerated their capital expenditure plans, spurring Nvidia to increase its revenue guidance above expectations by 55.5%, or $3.9 billion, for Q2 2023.
Even so, Nvidia does not own the entire AI value chain and VC investors have already begun shifting their focus to categories in which startups can carve out market share. Hyperscalers' custom chips and startups can outperform the chip giant on specific inference tasks that will increase in importance as large language models are rolled out from cloud data centers to customer environments.  | | Our note details the use cases and architectures driving neural network processor adoption. | Our analyst note Inferring the Future of AI Chips from Q4 2022 details the use cases where startups can surpass Nvidia in AI inference as generative AI adoption grows. The note also reveals the demand driving Nvidia's automotive growth to exceed even its data center business. We expect further startup innovation to drive that market forward in parallel with generative AI. Don't hesitate to reach out to discuss any of these topics further. | | | | | | | | | AI, intelligent automation set to drive enterprise SaaS growth and innovation | | We've launched analyst coverage of the enterprise SaaS vertical with a massive 5,000+ company segmentation across six major segments of enterprise solutions. Drawing from our ~3.6 million company profiles, we find that enterprise SaaS venture deal activity and deal value have steadily decreased from recent highs in 2021 and 2022, with Q1 2023 representing a further overall softening of investments. Bucking the trend are large multimillion- and multibillion-dollar deals for venture-growth-stage companies, especially unicorns and decacorns. Alongside our detailed taxonomy (six segments, 23 subsegments), we have market projections through 2027, envisioning the global enterprise software market to grow from $292 billion in 2022 to $522 billion in 2027.  | | Click to access a free preview of our Enterprise SaaS Report. | We expect enterprises will continue to transition from on-premise to SaaS and cloud-based deployments, creating opportunities for meaningful connected strategies with customers while also providing greater revenue continuity for vendors. Additionally, the integration of AI and intelligent automation represents a key next-gen driver of future growth and disruption. - Customer Relationship Management (CRM): Digital-first customers are expected to be more receptive to AI-enabled interfaces and interactions, further disrupting traditional marketing, sales, and customer service & support avenues, enabling our largest segment to continue at nearly the highest rate of growth.
- Enterprise Resource Planning (ERP): Sector-specific opportunities for incorporating digital transformation and emerging technologies continue to drive widespread investment in the ERP segment, despite current market headwinds having a greater effect on these products.
- Supply Chain Management (SCM): We expect SCM investments to lead the pack with a five-year CAGR of +15% as greater observability and digitally enabled efficiencies are incorporated across ever-tenuous global supply chains.
- Analytic Platforms (AP): Major recent innovations and disruptions, ranging from digital transformations of legacy analog operations to pandemic-driven reshuffling of traditional oversight and observability, have ramped up demand for increasingly innovative AP solutions. We believe this trend will drive above-average revenue growth.
- Knowledge Management Systems (KMS): Investments in worker productivity and team collaboration have been a major focus since the pandemic disruption to many workplaces. We believe this segment will continue to grow, though at a tapered pace compared to recent years.
- Other Application Software (OAS): We expect accelerated development of emerging technologies to drive new OAS product lines, enabling enterprises to incorporate new and novel solutions.
For more data and analysis, download a free preview of our debut Enterprise SaaS Report.
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VC deals in healthcare IT have picked up from the vertical's low point in late 2022, with 70 rounds accounting for $1.3 billion raised in Q1.
They're not blockbuster numbers, but the outlook for healthcare IT deals is bullish, particularly for generative AI applications and tech that supports interoperability.
Our Healthcare IT Report highlights need-to-know VC and PE deals from the period and addresses which parts of the healthcare system AI could transform first—and when: | | | | | | Gaming startups worldwide raised $1.1 billion during Q1, an increase of 11% quarter-over-quarter.
Deal count was also up 21%, but the picture is less than stellar on an annual basis, as broader economic trends continued to dampen dealmaking.
Meanwhile, the vertical is the latest to embrace generative AI and what it could mean for content creation.
Our new Gaming Report dives into the data and emerging trends, including the opportunity for companies that protect game developers from cyber threats: | | | | | |
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PE and VC in France have defied the market downturn.
Indeed, France's private markets and its overall economy have shown great resilience in 2023, with PE deal value increasing by 43.9% compared to the end of last year. VC is also displaying promising signs.
Our 2023 France Private Capital Breakdown reveals the country was home to two of the three PE megadeals to occur in Europe this year.
Furthermore, Paris continues to defend its second-place position as a top VC hub in Europe with strong deal value: | | | | | |
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A number of events coming up this month: - June 14: Tech analyst Brendan Burke will be joined by Madrona investor Palak Goel to discuss generative AI's various applications and the key trends and opportunities within this emerging space. Register here.
- June 20: Healthcare analyst Aaron DeGagne will host Zane Burke, CEO of Quantum Health, in a discussion of care and benefits navigation, how it optimizes patient access to care, and what the future holds. Register here.
- June 21: Despite elevated stress in the banking system and tightening credit conditions, PE dealmaking has remained resilient. Our analysts will dive deep into where the PE landscape stands. Register here.
- June 28: VC analyst Kyle Stanford will be speaking to venture trends in turbulent times at the Collision Conference in Toronto. More details here.
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Our insights and data featured in the press: - One corner of the M&A market has held up better than others: the sale of non-backed, founder-owned companies. [The Information]
- "There's no way to hide behind the opaqueness of the private markets for a crypto fund with token holdings." [Fortune]
- Generative AI and technology enabling interoperability have been two bright spots in the healthcare IT space. [Axios Pro]
- Companies are starting to recognize the potential user-generated content has for video games. [The Information]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team. | | | | | |
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Highlights from our other recent research:
Market updates
Thematic research
Industry & tech research
Coming next week (subject to change) - US Public PE & GP Deal Roundup
- Clean Energy Tech Report
- Emerging Spaces Brief: Digital Twins
- How ESG commitments affect private fund performance
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| | Since yesterday, the PitchBook Platform added: | | 427 Deals | 2007 People | 417 Companies | 17 Funds | | | | | | |
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