Each quarter we aim to keep you up to date with a concise review of the M&A and fundraising activity in the Technology Sector in GSA, together with a look at capital market developments, valuation levels and a deep dive into particular sector issues with insights from our KPMG experts.
In this issue:
- Mergers & Acquisitions: The tech deal landscape witnessed a growth in deal count in 3Q22 despite unfavorable macroeconomic conditions impacting deal activity across other sectors. Deal volume jumped by 20% q-o-q, after a decline in the previous quarter. Vertical market software leads tech deals as private equity continues to lean into tech.
- Fundraising: Following a record-breaking 2Q22 in terms of deal count, VC funding fell by 5% q-o-q. However, early-stage financing rounds set a new record in this quarter, with highest number of deals since 2019. The expectations for the last quarter of the year are optimistic for VC funding. The positive outlook is owed to the growing interest of investors in FinTech, HealthTech and AI-based start-ups.
- Capital markets: STOXX Europe 600 index continued its bearish trend in 3Q22 and tumbled 4.8% during the quarter, as increasing interest rates by central banks to counter record-high inflation, coupled with rising energy prices, tripped the European equity market. Going forward, European equities are likely to remain bearish in the short- to medium-term.
- KPMG Insights: KPMG's new report “Digital Health” explores the rise in the adoption of Digital Health technologies, which is transforming the traditional healthcare industry and leading to increasing investment opportunities for businesses and investors in the sub-sector. Global healthcare spending has been continuously increasing over the past two decades and is forecasted to increase from €8.8tn in 2021 to €10.6tn in 2025.