Dedale & H.I.E.C B2B Software Market Update – May 2025
We are pleased to share the latest B2B market review from our partners at Dedale (ex-Software Club). We have included a snapshot and some commentary from the impressive report for your interest, but there is much more to discover.
View a snapshot of the report here: Dedale Snapshot Report May 2025
If you would like the full copy, please get in touch with Ed Fanshawe or Tim Chamberlain.
H.I.E.C Market Snapshot from the Report:
- B2B software stocks dropped 5.7% in April, in line with the S&P 500 (-5.1%) and Nasdaq (-6.1%).
- EV/Sales NTM valuations down 14% YTD, from 6.4x in Dec ’24 to 5.5x in April – below COVID-era lows.
- The “Rule of 40” (growth + margin) still correlates with higher valuations; in April, Rule of 40 companies averaged 6.1x EV/Sales.
What does this mean for PE and Talent Strategy?
- Valuation resets create prime entry points for dry-powder-rich funds.
- AI is still drawing capital and talent, but so is any firm enabling AI infra or data compliance (e.g., Didomi, SmartTrade, FNZ).
- Hiring priorities shift toward profitability-focused operators, especially those with experience scaling through macro turbulence.
- “Rule of 40” operators (those balancing efficiency with growth) are at a premium in M&A and IPO markets.
If you would like the full copy, please get in touch with Ed Fanshawe or Tim Chamberlain.