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Technology funding for procurement solutions is defying the overall technology market: The valuation reality (Part 2)

09/21/2022 By

Depending on where you sit from a technology funding perspective these days, the situation is either abysmal or (nearly) acceptable. There really is no middle ground anymore (it’s more abysmal outside of procurement technology!).

Granted, valuations across the board are down (of course), reflecting declines in broader tech indexes, especially the NASDAQ overall, and more specifically the descent of Coupa’s stock price from mid-pandemic highs. And yet, there are bright spots, if you know where to look. Just as Coupa’s recently announced stock buyback program signals the firm’s own confidence in its near-term opportunities, so too can smaller vendors find the select tailwinds that can help them navigate the stormy weather that has gathered.

Case in point, I’ve spoken to a lot of investors and owners recently, and while I can’t share names and individual case examples, I can share overall learnings about what is driving valuations in procurement technology — a market that, despite getting caught up in the overall downdraft, is still doing better than peers in other sectors, mind you! — and how to position your business best for a very different negotiation environment from that of the past three to five years.

In this Spend Matters PRO brief, I’ll share what is separating out those desperate for term sheets and/or willing to accept down rounds (or low valuation exits) from those sitting on the other end of the spectrum ...

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