D.A. Davidson & Co. has published “The Herd 2024,” featuring the top 100 privately-held software companies globally, emphasizing their innovation, funding success, and resilience in a challenging market. The report highlights important metrics, including median valuations and the role of leading investors, signaling a robust outlook for these firms as they prepare for potential IPOs.
D.A. Davidson & Co. has recently unveiled its fifth annual report titled “The Herd 2024,” showcasing the top 100 privately-held software companies worldwide. This compilation predominantly features companies within D.A. Davidson’s specialization areas, such as application and vertical software, as well as infrastructure and security software. The selection process emphasized the demonstrated track record of innovation, focusing on aspects such as scale, growth, market visibility, capitalization, strategic positioning, and proprietary analytics developed by D.A. Davidson. Greg Thomas, the Managing Director and Co-Head of the Technology Investment Banking Group at D.A. Davidson, stated, “The Herd 2024 demonstrates our continued commitment to help private company clients achieve their strategic and financial goals.” He highlighted the impressive retention rate, with 70 firms reappearing from the previous year’s selection, underscoring their resilience in a challenging market environment. Jonathan Lejuez, Managing Director in D.A. Davidson’s Technology Investment Banking Group, observed that many growth-stage companies performed surprisingly well between 2023 and 2024, buoyed by factors such as private capital availability, enhanced capital efficiency, and comparatively relaxed investor requirements. Key insights from “The Herd 2024” include median statistics indicating that these companies have been in operation for approximately 12 years, employ around 900 individuals, and have a reported valuation of $3.5 billion. Collectively, the companies have raised nearly $65 billion, with more than two-thirds having achieved Series D funding or beyond. The median interval between funding rounds for these firms is noted to be 14 to 18 months, with median amounts raised per round at $110 million (Series D), $148 million (Series E), and $200 million (Series F). The report also highlights Accel and Andreessen Horowitz as the most active lead investors across various funding rounds, each leading 22 rounds from Series A through Series F. Gary Morabito, Managing Director at D.A. Davidson, emphasized the abundance of private capital available for leading software companies, which has facilitated technological advancements that would sustain long-term growth. Looking ahead, Morabito anticipates a significant interest from institutional investors in high-growth and high-quality firms following the opening of IPO opportunities in 2025. D.A. Davidson’s Technology Investment Banking Group leverages decades of experience and industry acumen to provide advisory and capital-raising services, aiming to foster enduring partnerships with its clients. D.A. Davidson Companies, established in 1935 and headquartered in Great Falls, Montana, is a prominent employee-owned financial services firm offering diverse financial solutions across the United States. Its subsidiaries include D.A. Davidson & Co., Davidson Investment Advisors, and D.A. Davidson Trust Company, collectively employing approximately 1,600 individuals across 30 states.
The announcement of “The Herd 2024” by D.A. Davidson & Co. serves as a significant acknowledgment of the top privately-held software companies in the global market. This annual report not only highlights the innovation and growth potential of these companies but also provides valuable information about their funding and investment dynamics. The focus on parameters such as market awareness and strategic positioning offers a comprehensive view of the evolving tech landscape, which is key for investors and stakeholders looking to navigate the complexities of the technology sector.
In summary, D.A. Davidson’s “The Herd 2024” report illustrates the resilience and growth of the top privately-held software companies amidst challenging market conditions. The report emphasizes the importance of strategic investor support, funding efficiency, and long-term growth potential as primary factors influencing these companies’ successes. With substantial private funding flowing into this sector, the anticipated public offering surge in the forthcoming years reflects a promising future for these innovative enterprises.
Original Source: www.fintechfutures.com
Leave a Reply