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THE STATE OF SMB SOFTWARE
A look at Q1 2019’s fundraising and exit trends among
North American SMB software companies
Q1
2019
T a b l e o f C o n t e n t s
01 Introduction
02 Methodology and Scope
03 Venture Capital (VC) deals
04 Private Equity (PE) deals
05 Mergers & Acquisitions (M&A)
06 IPOs
07 Public Market Activity
08 Takeaways and Recap
surepathcapital.com
S u r e P a t h : O u r P u r p o s e
Helping fund, grow, and exit SMB software companies
SurePath maximizes your optionality
We make sure you know what it takes to build a market leader and capitalize you towards that goal.
We ensure you are always in the minds of strategic buyers so that if they decide to make a move in your space, you are
in the conversation. You can then decide; Keep going or exit?
The process of raising growth capital is very different from raising early stage capital
It is cheaper than ever to start companies, but more expensive than ever to build market leaders. If that’s your
aspiration, you need growth capital
We help you prepare for growth stage and help you raise the capital needed to become a market leader
Growth
Funding
We track every SMB software company in the market
Buyers have recognized that we have unique insights into this market
We leverage our in-depth coverage and insights to accelerate our clients’ acquisition programs
Acquisitions
Great exits don’t just happen. Buyers don’t just show up ready to pay a premium
We work with you to facilitate the BD and Corp Dev intros that pave the way to an eventual exit
No other investment banking firm has the depth of our relationships in the SMB world
Exits
3
3
surepathcapital.com
S u r e P a t h a n d S M B
Business Management E-Commerce
CRMMarketing Tech
Payments/ POS
We have been part of some the most successful SMB SaaS companies
We have deep relationships with SMB investors and buyers
SurePath is committed to becoming the leading strategic financial advisor to the global SMB software market
4
surepathcapital.com
R e c e n t S u r e P a t h D e a l s
5
served as the exclusive strategic
and financial advisor to
on its growth
financing led by
USD $60,000,000
served as the exclusive strategic
and financial advisor to
on its growth
financing led by
CAD $115,000,000
served as the exclusive strategic
and financial advisor to
on its sale to
served as the exclusive strategic
and financial advisor to
on its sale to
served as the exclusive strategic
and financial advisor to
on its growth
financing led by
USD $11,800,000
served as the exclusive strategic
and financial advisor to
a wholly-owned subsidiary of
on its sale to
served as the exclusive strategic
and financial advisor to
on its sale to
served as the exclusive strategic
and financial advisor to
on its growth
financing led by
USD $32,000,000
surepathcapital.com
T h e S u r e P a t h T e a m
The SurePath team has over 30 years of experience in operating, growing, investing, buying, and selling SMB software companies.
M A R K
M A C L E O D
F O U N D E R
J O S H
S C H E R M A N
V I C E - P R E S I D E N T
D A N I A L
S H A I K H
A S S O C I A T E
6
E R I K
M O S N E Y
A N A L Y S T
S A R A
D E F I N A
A N A L Y S T
K J
L E E
A N A L Y S T
Q1 2019 SMB Software Deals
Welcome to our third annual State of SMB Software Report, looking at fundraising and exit activity in the Small
and Mid-Sized Business (SMB) software space in North America. To isolate the SMB deal activity, we analyzed
over 887 deals narrowing them down to 246 venture deals, 5 PE Growth and Buyout/LBO deals, 11 M&A deals,
and 6 IPOs representing over $35.3B in deal proceeds to SMB software companies. M&A transaction value
captured the most dollars as First Data agreed to a ~$22B deal with Fiserv while all other M&A deals accounted
for $2.6B of transaction value. Capital raised through venture capital outpaced deal value for PE
Growth/Expansion transactions in Q1 2019. However, we see PE as a growing category of deals giving
companies two bites at the apple – a partial exit today, with significant upside for the future.
We track SMB software companies across three broad categories: Grow my Business (front office), Run my
Business (middle office) and Track my Business (back office). For VCs, most activity was in front office. For PE
firms, the middle office was most popular.
The first quarter of 2019 saw significant increases in deal volume over Q1 2018 in every category of deal that
we track. VC deal value grew almost 4x year on year. PE deal value was $3.8B, up from $132M. Even excluding
the $22B sale of First Data, M & A value was up significantly. Overall deal value was up 3.5x year on year.
The public markets also had a strong quarter. Our SurePath SMB Index gained 60 points in the quarter, 3xing the
performance of the major indices. Perhaps not coincidentally, 9 SMB software companies went public in Q1.
We hope you find this report useful and invite you to get in touch to discuss it with us.
The SurePath team
April 2019
T h e S t a t e o f S M B S o f t w a r e : Q 1 2 0 1 9
surepathcapital.com8
surepathcapital.com
M e t h o d o l o g y
In Q1 2019, there were over 1,300 deals in the B2B
software space, globally.
887 deals were in North America
268 deals (246 venture deals, 11
M&A deals, 5 PE/Buyout/LBO
deals, and 6 IPOs) involved
companies with a clear SMB
software offering
9
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
2 0 1 9 C h a n g e s t o S M B C a t e g o r i z a t i o n
surepathcapital.com10
Beginning in 2019, we updated our approach for tracking SMB software companies. While we continue to track
SMB software companies across three broad categories of Grow my Business (front office), Run my Business
(middle office) and Track my Business (back office), we have re-assessed and expanded our sub-categories
within each them as follows:
Grow My Business
Sales Tech
Marketing Tech
Advertising Tech
E-Commerce
Social Media Management
Marketplace
Run My Business
HR Tech
Security / IT
Business Management / ERP
Practice Management
Productivity
Reputation Management
Booking
Customer Support
Websites
Member Management
Keep Track of My
Business
Accounting & Invoicing
Payments
surepathcapital.com
$2M
$30M
$83M
$477M
$261M
$1,000M
96
150
2
6 10 3
0
50
100
150
200
250
300
350
400
$0M
$200M
$400M
$600M
$800M
$1,000M
$1,200M
DealCount
AverageDealSize(inmillions,USD)
Average Deal Size by Deal Type
Average Deal Size Deal Count
Q 1 2 0 1 9 S M B S o f t w a r e D e a l L a n d s c a p e
Over $35B of capital was deployed across 268 deals in Q1 2019. Of that, nearly ~70% of the capital invested came from
M&A activity ($24B across 11 deals). From a deal volume perspective, early and late stage venture capital raises accounted
for the largest deal category in Q1 2019.
11
$24,614M
$4,435M
$3,000M
$2,862M
$213M $165M
Total Capital Invested by Deal Type
Merger/Acquisition Early/Late Stage VC Buyout/LBO
IPO Angel/Seed PE Growth/Expansion
1. First Data’s $22B acquisition by Fiserv has been excluded in the average deal size and count data on this slide as it is an outlier which skews average deal size in this case
2. Source: Pitchbook
3. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
Q 1 2 0 1 9 S M B S o f t w a r e D e a l s B y S t a t e
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
94% of North American SMB software deals in Q1 2019 involved companies based in the United States. Naturally, California
saw the most deal activity representing ~34% of all deals, followed by New York which represented ~12% of all deals.
12
surepathcapital.com
$105M $108M
$856M
$3,579M
57
39
71 79
0
10
20
30
40
50
60
70
80
90
-
$500M
$1,000M
$1,500M
$2,000M
$2,500M
$3,000M
$3,500M
$4,000M
Angel Seed Round Early Stage VC Later Stage VC
DealCount
CapitalRaised(inmillions,$USD)
Capital Raised by Venture Deal Type
Capital Raised Deal Count
S M B V e n t u r e F u n d i n g i n Q 1 2 0 1 9
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, and crowdfunding and deals with undisclosed values
246 SMB software companies raised venture capital in Q1 2019. Most of the deal volume was in early and later stage VC
investments. The average round was ~ $45M for late stage and ~ $12M for early stage.
13
surepathcapital.com
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
$100M Tiger Global / BlackRock/ Other undisclosed
$100M SoftBank
$97M Brookfield Ventures / Sequoia / GLP
Other Undisclosed
$83M Georgian / Comerica / LiveOak Ventures
Bessemer / The Stephens Group
$60M Insight Venture Partners
* Advised by SurePath Capital Partners
$1B SoftBank / SF Express / Susa Ventures
Cherubic Ventures / Founders Fund / DST
$400M Dragoneer / Temasek / SoftBank / Sequoia
DST / Y Combinator / GIC Private / Coatue
$250M TCV / Tiger Global / Bessemer / T.Rowe
$250M Undisclosed
$100M Tiger Global
Q 1 2 0 1 9 ’ s T o p S M B S o f t w a r e R a i s e s
14
surepathcapital.com
V e n t u r e D e a l s b y C a t e g o r y
SMB software companies raised ~ $4.6B across 246 deals in 2018. Of those, companies that helped SMBs grow and run their
business attracted ~90% of the venture capital in the SMB software space.
Outer ring represents total
capital invested by
category and inner ring
represents total deal count
by category
We track SMB software
companies across three
broad categories:
• Grow my Business:
Marketing / front office
• Run my Business:
Typically vertical apps
to help operate
(business management,
ERP, etc.)
• Track my Business:
Billing, accounting, etc.
15
83
19
144
$1,272M
$533M
$2,843M
Grow My Business
Keep Track of My Business
Run My Business
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
V e n t u r e D e a l s b y C a t e g o r y ( c o n t . )
16
Amongst our 16 SMB software categories, companies with Business Management/ERP system offerings continued to attract
the highest amount of deal capital and deal volume in Q1 2019. We also saw a large number of deals within the productivity
and sales tech category.
46
15
13
30
29
28
26
14
6
8
9
4
7
5 5 1
$1,805M
$672M
$424M
$351M
$279M
$271M
$245M
$239M
$109M
$107M
$58M
$31M
$27M
$26M $5M $1M
Business Management/ERP
Marketplace
Payments
Productivity
Sales Tech
Mar Tech
HR Tech
Security/IT
Accounting/Invoicing
Customer Support
Booking
Member Management
Practice Management
E-Commerce
Ad Tech
Reputation Management
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
184
49
13
$6,948M
$677M
$1,327M
Both
Medium
Small
V e n t u r e D e a l s b y T a r g e t C u s t o m e r
~75% of venture funding in Q1 2019 went to companies with a broad offering for both the small and medium segments of the
SMB software space. This is the same proportion that we saw throughout 2017 and 2018. Relatively few companies served
either only the small or medium segments explicitly. This makes sense as it enables software vendors to reach a larger market.
17
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
11
4
7
12
3
5
7
12
10
3
42 $707M
$210M$118M
$113M
$94M
$89M
$73M
$66M
$60M
$52M
$196M
Restaurant Tech
Logistics
Legal
Real Estate
Software Development
Construction
Retail
Healthcare
Financial Services
Financial Technology
Other
V e r t i c a l - S p e c i f i c V e n t u r e D e a l s
Across 26-disctinct vertical-specific categories, we saw 116 deals with a total of ~$1.8B raised in Q1 2019. The top 10 verticals
represented ~90% of vertical-specific transaction value and ~63% of deal volume, which is largely consistent with what we
saw in 2018. Restaurant-Tech, Logistics and Legal verticals accounted for over ~60% of the total deal volume in Q1 2019.
18
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
Q 1 2 0 1 9 P E S M B D e a l s
19
$1.9B Visa Equity Partners
Public-to-Private LBO
$1B Certify / K1 Investment Management
Announced Add-on
$115M
JMI Equity / Centana Growth Partners
Growth Round
* Advised by SurePath Capital Partners
$100M K1 Investment Management
Platform Acquisition
$50M Great Hill / Eight Roads / .406 Ventures
Growth Round
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
C a s e S t u d y : S u r e P a t h C a p i t a l P a r t n e r s a d v i s e s
V e n a S o l u t i o n s o n i t s $ 1 1 5 M g r o w t h f i n a n c i n g
20
served as the exclusive strategic and
financial advisor to
on its growth financing from
for total consideration of
The only investment bank focused exclusively on
SMB SaaS and commerce
$115,000,000
Transaction Overview:
• In January 2019, Vena Solutions announced a $115M CAD growth
equity financing round led by JMI Equity and existing backer Centana
Growth Partners.
• Vena will use the proceeds to significantly grow its team and to
expand its customer base of 600 primarily North American mid-market
companies with between by hundreds more in the coming years.
• Vena provides cloud-based budgeting, forecasting, planning,
reporting, and analytics software for corporate finance departments.
• Founded in 1992, JMI Equity has raised over $4 billion of committed
capital since inception and helps growing software companies
become industry leaders. Over the years, it has completed 145
investments, over 90 exits, and 19 IPOs.
SurePath’s Role:
• SurePath Capital Partners (SCP) served as sole / exclusive strategic
and financial advisor to Vena’s Founders / Board.
• SCP delivered a competitive, oversubscribed growth financing process
without having to fully go to market.
surepathcapital.com
P E G r o w t h / B u y o u t D e a l s b y C a t e g o r y
In Q1 2019, private equity investors deployed ~3.2B of capital into companies serving the SMB space. Of those, companies
that help SMBs run their business attracted over 65% of the capital invested, largely driven by the Mindbody's $1.9B public-to-
private LBO.
21
2
3
$1,050M
$2,115M
Grow My Business
Keep Track of My Business
Run My Business
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
P E G r o w t h / B u y o u t D e a l s b y C a t e g o r y ( c o n t . )
22
Of the 5 private equity/buyout deals in Q1 2019, SMB companies either fell within the Business Management/ERP system,
Accounting/Invoicing of Booking categories. The Chrome River (accounting/invoicing) and Mindbody(booking) LBO’s
accounted for over 90% of the deal proceeds.
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
2
2
1
$215M
$1,050M
$1,900M
Business Management/ERP
Accounting/Invoicing
Booking
surepathcapital.com
P E G r o w t h / B u y o u t D e a l s b y T a r g e t C u s t o m e r
23
80% of private equity and LBO/buyout deal volume in 2018 went to companies with a broad offering for both the small and
medium segments of the SMB software space. Relatively few companies served either only the small or medium segments
explicitly.
4
1
$1,265M
$1,900M
Both
Medium
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
1. In addition, Innovative Properties (CNQ: NAB) reached a definitive agreement to acquire the Bloombox brand of Momentum Ideas for $2 million on February 6, 2019.
2. Source: Pitchbook
3. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
Q 1 2 0 1 9 S M B S o f t w a r e M & A D e a l s
24
$22B 57.5% Acquired by Fiserv
Announced
$1.1B 100% Acquired by Morgan Stanley
Announced
$619M 100% Acquired by Carbonite
Completed
$465M 100% Acquired by Airbnb
Completed
$230M 100% Acquired by Dropbox
Completed
$200M 100% Acquired by Plaid
Completed
$166M 100% Acquired by Atlassian
Completed
$53M 100% Acquired by Okta
Completed
$32M 100% Acquired by Corcentric
Announced
$4.5M 100% Acquired by GetSwift
Completed
surepathcapital.com
1
2
8
$2M
$22,844M
$1,769MGrow My Business
Keep Track of My Business
Run My Business
M & A D e a l s b y C a t e g o r y
The cumulative value of all mergers and acquisitions (with disclosed proceeds) in the SMB software space in Q1 2019 was
~$24.6B across 11 deals. ~90% of deal proceeds related to the acquisition of First Data by Fiserv for $22B.
25
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
M & A D e a l s b y C a t e g o r y ( c o n t . )
26
1
1
1
1
4
1
1
1
$22,000M
$844M
$619M
$465M
$453M $32M $2M
Payments
Accounting/Invoicing
Security/IT
Booking
Productivity
Member Management
Business Management/ERP
E-Commerce
From a deal volume perspective, companies that had productivity offerings attracted the highest number of deals in Q1 2019.
However, the payments category attracted the largest amount of deal proceeds driven by the First Data acquisition.
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
M & A D e a l s b y T a r g e t C u s t o m e r
90% of M&A activity in 2018 went to companies with a broad offering for both the small and medium segments of the SMB
software space. Consistent with what we saw with the other deal types and historically, relatively few companies served
either only the small or medium segments explicitly.
27
10
1
$24,582M
$32M
Both
Medium
1. Source: Pitchbook
2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
surepathcapital.com
IPO/Filing Date February 4 February 6 March 15 March 22 March 22
Status
Filed
(Direct Listing)
Complete Complete Filed Filed
Amount Raised/Expected NA $240M (CAD) $218M $1.5B $348M
Age at IPO 10 Years 14 Years 10 Years 9 Years 8 Years
Annual Revenue at IPO $221M $71.8M (USD) $79.6M $756M $331M
Headcount at IPO 1,000 700 524 1,600 1,700
Pre-IPO Investors
Accel, Andreessen
Horowitz, M13 , SV
Angel, Social +
Capital, GV, Kleiner
Perkins
iNovia, Accel,
Hercules, SVB
Investissement QC,
Teralys, Otimo, Caisse
de dépôt
Andreessen Horowitz,
Bessemer, Y Ventures,
Ignition, Y Combinator,
Accel, T. Rowe
Andreessen Horowitz,
Bessemer, NY Angels,
Acequia, SV Angel,
EventBrite, Rakuten
TSVC Capital,
Qualcomm,
Facebook, Horizons,
Emergence, Sequoia
1. Lightspeed and Pager Duty filed for IPO in Q1 2019 but completed the their respective listings in Q2 2019; Amount Raised/Expected represents amount raised for both companies
2. Source: Pitchbook
3. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
Q 1 2 0 1 9 ’ s S M B S o f t w a r e I P O s
28
(TSE:LSPD) (NYSE:PD) (NYSE:PINS) (NAS:ZM)
The SurePath SMB Index
surepathcapital.com
SMB is
our
focus
Our
clients
serve
SMBs
Many
other
indices
The first
to see
trends
Introduced in 2016, the SurePath SMB Index originally tracked 35 publicly traded companies that serve the SMB
market and their performance against other benchmark indices. Over time, as companies in the index have
been acquired, and other relevant companies have publicly listed, the current number of constituents is 37.
Examined 280+ Annual Reports of Publicly
Traded Companies
Selection of Companies for SMB
Focus
SurePath SMB Index
T h e S u r e P a t h S M B I n d e x
Final Selection of 37
Companies
30
2 0 1 9 C h a n g e s t o S M B I n d e x
surepathcapital.com31
During the first quarter of 2019 we added 6 relevant companies that IPOed. These are companies that are making it easier
for SMBs to move faster (Dropbox and DocuSign), gather feedback from customers and employees (SurveyMonkey),
improve the current and prospective employee experience (Ceridian), sell to customers easier and more efficiently
(Lightspeed), and more.
8 of the original constituents of our SMB Software Index were removed during this period following the completion of their
acquisition. ShoreTel (acquired by Mitel), Web.com (acquired by Sirus Capital), FirstData (acquired by Fiserv), and Mindbody
(acquired by Vista Equity Partners).
surepathcapital.com
I n d e x C o n s t i t u e n t s
32
surepathcapital.com
80%
100%
120%
140%
160%
180%
200%
220%
240%
SurePath SMB Index S&P 500 Nasdaq Dow Jones
S u r e P a t h S M B S o f t w a r e I n d e x
• All 37 companies are weighted based on Market Cap and indexed at
January 4, 2016
• 35 of the 37 companies are part of the $1 billion market cap club (a
club we expect will grow over time)
• The companies on the SCP SMB Software Index have a combined
market cap in excess of $395B
33
Company Ticker
Market Cap
(billions)
Automatic Data Processing, Inc. ADP $69.85
Intuit Inc. INTU $67.80
Square, Inc. SQ $31.49
Paychex, Inc. PAYX $29.02
Atlassian Corporation Plc TEAM $26.66
Shopify Inc. SHOP $21.96
GoDaddy Inc. GDDY $13.07
Paycom Software, Inc. PAYC $10.73
Sage Group plc LON:SGE $10.16
DocuSign DOCU $9.15
Dropbox DBX $9.03
Zendesk, Inc. ZEN $8.85
RingCentral, Inc. RNG $8.64
ANGI Homeservices Inc. ANGI $7.77
Ceridian CDAY $7.29
GrubHub Inc. GRUB $6.48
HubSpot, Inc. HUBS $6.50
New Relic, Inc. NEWR $5.52
Wix.com Ltd. WIX $5.63
H&R Block, Inc. HRB $5.07
Xero Limited. ASX:XRO $4.94
LendingTree, Inc. TREE $4.71
Qualys, Inc. QLYS $3.16
Yelp Inc. YELP $2.90
AppFolio, Inc. APPF $2.79
Cimpress N.V. CMPR $2.56
Groupon, Inc. GRPN $2.03
SurveyMonkey SVMK $2.23
Deluxe Corp. DLX $2.01
Eventbrite EB $1.64
Shutterstock, Inc. SSTK $1.66
Stamps.com Inc. STMP $1.41
LightSpeed POS LSPD $1.30
LendingClub Corporation LC $1.37
Endurance International Group Holdings, Inc. EIGI $1.01
Carbonite, Inc. CARB $0.88
Marchex, Inc. MCHX $0.20
$1bn Market Cap Club (in Grey)
Market Cap by Index Constituents (in US$ b)
Lessons & Takeaways
surepathcapital.com
2019 will be defined by high IPO volume: There were 9 SMB software IPOs in FY2018; Q1 2019’s IPO count
already represents 2/3 of last year’s volume.
Public markets make a comeback: After a challenging end of 2018 for public markets, our SurePath SMB index
roared ~3x higher than the ~20% gains realized by the major North American indices in Q1 2019. Marchex
(MCHX)was the best performer in the index posting a 24% gain and Eventbrite (EB) was the worst performer
posting a modest ~1% decline in value.
Later Stage VC rounds ramp up for unicorn IPO candidates: PostMates officially announced their IPO just
one month after raising another $100M in January. This represents the company’s 3rd raise in the past 6 months.
DoorDash raised $785M in 2018 and added another $400M in funding in Q1 2019 with Toast raising $365M over
the same time horizon.
Business management/ERP continues to be the top category for deals: We continue to see high deal volume
and transaction value for SMB business management/ERP software. As more young people start small
businesses, they want a modern technology platform to run their business on.
Restaurant tech remains the most popular vertical for funding and consolidation: In 2017 and 2018, we saw that
restaurant tech was the highest funded vertical which continued in Q1 2019. With many well funded market
potential leaders in the space and a sizable yet fragmented SMB market, we expect to see a clear market
leader emerge through consolidation who can address every aspect of operating a restaurant.
Payments deal activity is alive and well: First Data’s $ 22B acquisition by Fiserv was the largest deal of Q1 2019.
T a k e a w a y s & R e c a p
35
surepathcapital.com
The Leading Financial Advisor in SMB Software
EXPERIENCE
Funding, growing & exiting tech companies
PEDIGREE
Alumni of Constant Contact, FreshBooks, Shopify…
ACCESS
To Tier 1 investors & strategic partners
FOCUS
The only advisor with a dedicated focus on SMB Software
COMMITMENT
Helping our clients and their investors succeed
T h e S u r e P a t h D i f f e r e n c e
36
Danial Shaikh
Associate
danial@surepathcapital.com
647.876.5453
Erik Mosney
Analyst
erik@surepathcapital.com
519.239.5759
Mark MacLeod
Founder & President
mark@surepathcapital.com
416.843.6004
Josh Scherman
Vice-President
josh@surepathcapital.com
646.420.0074
Toronto • San Francisco
Sara Defina
Analyst
sara@surepathcapital.com
416.689.2474
37
KJ Lee
Analyst
KJ@surepathcapital.com
647.500.3457

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SurePath Capital State of SMB Software - Q1 2019

  • 1. THE STATE OF SMB SOFTWARE A look at Q1 2019’s fundraising and exit trends among North American SMB software companies Q1 2019
  • 2. T a b l e o f C o n t e n t s 01 Introduction 02 Methodology and Scope 03 Venture Capital (VC) deals 04 Private Equity (PE) deals 05 Mergers & Acquisitions (M&A) 06 IPOs 07 Public Market Activity 08 Takeaways and Recap
  • 3. surepathcapital.com S u r e P a t h : O u r P u r p o s e Helping fund, grow, and exit SMB software companies SurePath maximizes your optionality We make sure you know what it takes to build a market leader and capitalize you towards that goal. We ensure you are always in the minds of strategic buyers so that if they decide to make a move in your space, you are in the conversation. You can then decide; Keep going or exit? The process of raising growth capital is very different from raising early stage capital It is cheaper than ever to start companies, but more expensive than ever to build market leaders. If that’s your aspiration, you need growth capital We help you prepare for growth stage and help you raise the capital needed to become a market leader Growth Funding We track every SMB software company in the market Buyers have recognized that we have unique insights into this market We leverage our in-depth coverage and insights to accelerate our clients’ acquisition programs Acquisitions Great exits don’t just happen. Buyers don’t just show up ready to pay a premium We work with you to facilitate the BD and Corp Dev intros that pave the way to an eventual exit No other investment banking firm has the depth of our relationships in the SMB world Exits 3 3
  • 4. surepathcapital.com S u r e P a t h a n d S M B Business Management E-Commerce CRMMarketing Tech Payments/ POS We have been part of some the most successful SMB SaaS companies We have deep relationships with SMB investors and buyers SurePath is committed to becoming the leading strategic financial advisor to the global SMB software market 4
  • 5. surepathcapital.com R e c e n t S u r e P a t h D e a l s 5 served as the exclusive strategic and financial advisor to on its growth financing led by USD $60,000,000 served as the exclusive strategic and financial advisor to on its growth financing led by CAD $115,000,000 served as the exclusive strategic and financial advisor to on its sale to served as the exclusive strategic and financial advisor to on its sale to served as the exclusive strategic and financial advisor to on its growth financing led by USD $11,800,000 served as the exclusive strategic and financial advisor to a wholly-owned subsidiary of on its sale to served as the exclusive strategic and financial advisor to on its sale to served as the exclusive strategic and financial advisor to on its growth financing led by USD $32,000,000
  • 6. surepathcapital.com T h e S u r e P a t h T e a m The SurePath team has over 30 years of experience in operating, growing, investing, buying, and selling SMB software companies. M A R K M A C L E O D F O U N D E R J O S H S C H E R M A N V I C E - P R E S I D E N T D A N I A L S H A I K H A S S O C I A T E 6 E R I K M O S N E Y A N A L Y S T S A R A D E F I N A A N A L Y S T K J L E E A N A L Y S T
  • 7. Q1 2019 SMB Software Deals
  • 8. Welcome to our third annual State of SMB Software Report, looking at fundraising and exit activity in the Small and Mid-Sized Business (SMB) software space in North America. To isolate the SMB deal activity, we analyzed over 887 deals narrowing them down to 246 venture deals, 5 PE Growth and Buyout/LBO deals, 11 M&A deals, and 6 IPOs representing over $35.3B in deal proceeds to SMB software companies. M&A transaction value captured the most dollars as First Data agreed to a ~$22B deal with Fiserv while all other M&A deals accounted for $2.6B of transaction value. Capital raised through venture capital outpaced deal value for PE Growth/Expansion transactions in Q1 2019. However, we see PE as a growing category of deals giving companies two bites at the apple – a partial exit today, with significant upside for the future. We track SMB software companies across three broad categories: Grow my Business (front office), Run my Business (middle office) and Track my Business (back office). For VCs, most activity was in front office. For PE firms, the middle office was most popular. The first quarter of 2019 saw significant increases in deal volume over Q1 2018 in every category of deal that we track. VC deal value grew almost 4x year on year. PE deal value was $3.8B, up from $132M. Even excluding the $22B sale of First Data, M & A value was up significantly. Overall deal value was up 3.5x year on year. The public markets also had a strong quarter. Our SurePath SMB Index gained 60 points in the quarter, 3xing the performance of the major indices. Perhaps not coincidentally, 9 SMB software companies went public in Q1. We hope you find this report useful and invite you to get in touch to discuss it with us. The SurePath team April 2019 T h e S t a t e o f S M B S o f t w a r e : Q 1 2 0 1 9 surepathcapital.com8
  • 9. surepathcapital.com M e t h o d o l o g y In Q1 2019, there were over 1,300 deals in the B2B software space, globally. 887 deals were in North America 268 deals (246 venture deals, 11 M&A deals, 5 PE/Buyout/LBO deals, and 6 IPOs) involved companies with a clear SMB software offering 9 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 10. 2 0 1 9 C h a n g e s t o S M B C a t e g o r i z a t i o n surepathcapital.com10 Beginning in 2019, we updated our approach for tracking SMB software companies. While we continue to track SMB software companies across three broad categories of Grow my Business (front office), Run my Business (middle office) and Track my Business (back office), we have re-assessed and expanded our sub-categories within each them as follows: Grow My Business Sales Tech Marketing Tech Advertising Tech E-Commerce Social Media Management Marketplace Run My Business HR Tech Security / IT Business Management / ERP Practice Management Productivity Reputation Management Booking Customer Support Websites Member Management Keep Track of My Business Accounting & Invoicing Payments
  • 11. surepathcapital.com $2M $30M $83M $477M $261M $1,000M 96 150 2 6 10 3 0 50 100 150 200 250 300 350 400 $0M $200M $400M $600M $800M $1,000M $1,200M DealCount AverageDealSize(inmillions,USD) Average Deal Size by Deal Type Average Deal Size Deal Count Q 1 2 0 1 9 S M B S o f t w a r e D e a l L a n d s c a p e Over $35B of capital was deployed across 268 deals in Q1 2019. Of that, nearly ~70% of the capital invested came from M&A activity ($24B across 11 deals). From a deal volume perspective, early and late stage venture capital raises accounted for the largest deal category in Q1 2019. 11 $24,614M $4,435M $3,000M $2,862M $213M $165M Total Capital Invested by Deal Type Merger/Acquisition Early/Late Stage VC Buyout/LBO IPO Angel/Seed PE Growth/Expansion 1. First Data’s $22B acquisition by Fiserv has been excluded in the average deal size and count data on this slide as it is an outlier which skews average deal size in this case 2. Source: Pitchbook 3. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 12. surepathcapital.com Q 1 2 0 1 9 S M B S o f t w a r e D e a l s B y S t a t e 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values. 94% of North American SMB software deals in Q1 2019 involved companies based in the United States. Naturally, California saw the most deal activity representing ~34% of all deals, followed by New York which represented ~12% of all deals. 12
  • 13. surepathcapital.com $105M $108M $856M $3,579M 57 39 71 79 0 10 20 30 40 50 60 70 80 90 - $500M $1,000M $1,500M $2,000M $2,500M $3,000M $3,500M $4,000M Angel Seed Round Early Stage VC Later Stage VC DealCount CapitalRaised(inmillions,$USD) Capital Raised by Venture Deal Type Capital Raised Deal Count S M B V e n t u r e F u n d i n g i n Q 1 2 0 1 9 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, and crowdfunding and deals with undisclosed values 246 SMB software companies raised venture capital in Q1 2019. Most of the deal volume was in early and later stage VC investments. The average round was ~ $45M for late stage and ~ $12M for early stage. 13
  • 14. surepathcapital.com 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values. $100M Tiger Global / BlackRock/ Other undisclosed $100M SoftBank $97M Brookfield Ventures / Sequoia / GLP Other Undisclosed $83M Georgian / Comerica / LiveOak Ventures Bessemer / The Stephens Group $60M Insight Venture Partners * Advised by SurePath Capital Partners $1B SoftBank / SF Express / Susa Ventures Cherubic Ventures / Founders Fund / DST $400M Dragoneer / Temasek / SoftBank / Sequoia DST / Y Combinator / GIC Private / Coatue $250M TCV / Tiger Global / Bessemer / T.Rowe $250M Undisclosed $100M Tiger Global Q 1 2 0 1 9 ’ s T o p S M B S o f t w a r e R a i s e s 14
  • 15. surepathcapital.com V e n t u r e D e a l s b y C a t e g o r y SMB software companies raised ~ $4.6B across 246 deals in 2018. Of those, companies that helped SMBs grow and run their business attracted ~90% of the venture capital in the SMB software space. Outer ring represents total capital invested by category and inner ring represents total deal count by category We track SMB software companies across three broad categories: • Grow my Business: Marketing / front office • Run my Business: Typically vertical apps to help operate (business management, ERP, etc.) • Track my Business: Billing, accounting, etc. 15 83 19 144 $1,272M $533M $2,843M Grow My Business Keep Track of My Business Run My Business 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 16. surepathcapital.com V e n t u r e D e a l s b y C a t e g o r y ( c o n t . ) 16 Amongst our 16 SMB software categories, companies with Business Management/ERP system offerings continued to attract the highest amount of deal capital and deal volume in Q1 2019. We also saw a large number of deals within the productivity and sales tech category. 46 15 13 30 29 28 26 14 6 8 9 4 7 5 5 1 $1,805M $672M $424M $351M $279M $271M $245M $239M $109M $107M $58M $31M $27M $26M $5M $1M Business Management/ERP Marketplace Payments Productivity Sales Tech Mar Tech HR Tech Security/IT Accounting/Invoicing Customer Support Booking Member Management Practice Management E-Commerce Ad Tech Reputation Management 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 17. surepathcapital.com 184 49 13 $6,948M $677M $1,327M Both Medium Small V e n t u r e D e a l s b y T a r g e t C u s t o m e r ~75% of venture funding in Q1 2019 went to companies with a broad offering for both the small and medium segments of the SMB software space. This is the same proportion that we saw throughout 2017 and 2018. Relatively few companies served either only the small or medium segments explicitly. This makes sense as it enables software vendors to reach a larger market. 17 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 18. surepathcapital.com 11 4 7 12 3 5 7 12 10 3 42 $707M $210M$118M $113M $94M $89M $73M $66M $60M $52M $196M Restaurant Tech Logistics Legal Real Estate Software Development Construction Retail Healthcare Financial Services Financial Technology Other V e r t i c a l - S p e c i f i c V e n t u r e D e a l s Across 26-disctinct vertical-specific categories, we saw 116 deals with a total of ~$1.8B raised in Q1 2019. The top 10 verticals represented ~90% of vertical-specific transaction value and ~63% of deal volume, which is largely consistent with what we saw in 2018. Restaurant-Tech, Logistics and Legal verticals accounted for over ~60% of the total deal volume in Q1 2019. 18 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 19. surepathcapital.com Q 1 2 0 1 9 P E S M B D e a l s 19 $1.9B Visa Equity Partners Public-to-Private LBO $1B Certify / K1 Investment Management Announced Add-on $115M JMI Equity / Centana Growth Partners Growth Round * Advised by SurePath Capital Partners $100M K1 Investment Management Platform Acquisition $50M Great Hill / Eight Roads / .406 Ventures Growth Round 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 20. surepathcapital.com C a s e S t u d y : S u r e P a t h C a p i t a l P a r t n e r s a d v i s e s V e n a S o l u t i o n s o n i t s $ 1 1 5 M g r o w t h f i n a n c i n g 20 served as the exclusive strategic and financial advisor to on its growth financing from for total consideration of The only investment bank focused exclusively on SMB SaaS and commerce $115,000,000 Transaction Overview: • In January 2019, Vena Solutions announced a $115M CAD growth equity financing round led by JMI Equity and existing backer Centana Growth Partners. • Vena will use the proceeds to significantly grow its team and to expand its customer base of 600 primarily North American mid-market companies with between by hundreds more in the coming years. • Vena provides cloud-based budgeting, forecasting, planning, reporting, and analytics software for corporate finance departments. • Founded in 1992, JMI Equity has raised over $4 billion of committed capital since inception and helps growing software companies become industry leaders. Over the years, it has completed 145 investments, over 90 exits, and 19 IPOs. SurePath’s Role: • SurePath Capital Partners (SCP) served as sole / exclusive strategic and financial advisor to Vena’s Founders / Board. • SCP delivered a competitive, oversubscribed growth financing process without having to fully go to market.
  • 21. surepathcapital.com P E G r o w t h / B u y o u t D e a l s b y C a t e g o r y In Q1 2019, private equity investors deployed ~3.2B of capital into companies serving the SMB space. Of those, companies that help SMBs run their business attracted over 65% of the capital invested, largely driven by the Mindbody's $1.9B public-to- private LBO. 21 2 3 $1,050M $2,115M Grow My Business Keep Track of My Business Run My Business 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 22. surepathcapital.com P E G r o w t h / B u y o u t D e a l s b y C a t e g o r y ( c o n t . ) 22 Of the 5 private equity/buyout deals in Q1 2019, SMB companies either fell within the Business Management/ERP system, Accounting/Invoicing of Booking categories. The Chrome River (accounting/invoicing) and Mindbody(booking) LBO’s accounted for over 90% of the deal proceeds. 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values. 2 2 1 $215M $1,050M $1,900M Business Management/ERP Accounting/Invoicing Booking
  • 23. surepathcapital.com P E G r o w t h / B u y o u t D e a l s b y T a r g e t C u s t o m e r 23 80% of private equity and LBO/buyout deal volume in 2018 went to companies with a broad offering for both the small and medium segments of the SMB software space. Relatively few companies served either only the small or medium segments explicitly. 4 1 $1,265M $1,900M Both Medium 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 24. surepathcapital.com 1. In addition, Innovative Properties (CNQ: NAB) reached a definitive agreement to acquire the Bloombox brand of Momentum Ideas for $2 million on February 6, 2019. 2. Source: Pitchbook 3. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values. Q 1 2 0 1 9 S M B S o f t w a r e M & A D e a l s 24 $22B 57.5% Acquired by Fiserv Announced $1.1B 100% Acquired by Morgan Stanley Announced $619M 100% Acquired by Carbonite Completed $465M 100% Acquired by Airbnb Completed $230M 100% Acquired by Dropbox Completed $200M 100% Acquired by Plaid Completed $166M 100% Acquired by Atlassian Completed $53M 100% Acquired by Okta Completed $32M 100% Acquired by Corcentric Announced $4.5M 100% Acquired by GetSwift Completed
  • 25. surepathcapital.com 1 2 8 $2M $22,844M $1,769MGrow My Business Keep Track of My Business Run My Business M & A D e a l s b y C a t e g o r y The cumulative value of all mergers and acquisitions (with disclosed proceeds) in the SMB software space in Q1 2019 was ~$24.6B across 11 deals. ~90% of deal proceeds related to the acquisition of First Data by Fiserv for $22B. 25 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 26. surepathcapital.com M & A D e a l s b y C a t e g o r y ( c o n t . ) 26 1 1 1 1 4 1 1 1 $22,000M $844M $619M $465M $453M $32M $2M Payments Accounting/Invoicing Security/IT Booking Productivity Member Management Business Management/ERP E-Commerce From a deal volume perspective, companies that had productivity offerings attracted the highest number of deals in Q1 2019. However, the payments category attracted the largest amount of deal proceeds driven by the First Data acquisition. 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 27. surepathcapital.com M & A D e a l s b y T a r g e t C u s t o m e r 90% of M&A activity in 2018 went to companies with a broad offering for both the small and medium segments of the SMB software space. Consistent with what we saw with the other deal types and historically, relatively few companies served either only the small or medium segments explicitly. 27 10 1 $24,582M $32M Both Medium 1. Source: Pitchbook 2. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values.
  • 28. surepathcapital.com IPO/Filing Date February 4 February 6 March 15 March 22 March 22 Status Filed (Direct Listing) Complete Complete Filed Filed Amount Raised/Expected NA $240M (CAD) $218M $1.5B $348M Age at IPO 10 Years 14 Years 10 Years 9 Years 8 Years Annual Revenue at IPO $221M $71.8M (USD) $79.6M $756M $331M Headcount at IPO 1,000 700 524 1,600 1,700 Pre-IPO Investors Accel, Andreessen Horowitz, M13 , SV Angel, Social + Capital, GV, Kleiner Perkins iNovia, Accel, Hercules, SVB Investissement QC, Teralys, Otimo, Caisse de dépôt Andreessen Horowitz, Bessemer, Y Ventures, Ignition, Y Combinator, Accel, T. Rowe Andreessen Horowitz, Bessemer, NY Angels, Acequia, SV Angel, EventBrite, Rakuten TSVC Capital, Qualcomm, Facebook, Horizons, Emergence, Sequoia 1. Lightspeed and Pager Duty filed for IPO in Q1 2019 but completed the their respective listings in Q2 2019; Amount Raised/Expected represents amount raised for both companies 2. Source: Pitchbook 3. Deal count excludes deals involving accelerators, incubators, crowdfunding and deals with undisclosed values. Q 1 2 0 1 9 ’ s S M B S o f t w a r e I P O s 28 (TSE:LSPD) (NYSE:PD) (NYSE:PINS) (NAS:ZM)
  • 30. surepathcapital.com SMB is our focus Our clients serve SMBs Many other indices The first to see trends Introduced in 2016, the SurePath SMB Index originally tracked 35 publicly traded companies that serve the SMB market and their performance against other benchmark indices. Over time, as companies in the index have been acquired, and other relevant companies have publicly listed, the current number of constituents is 37. Examined 280+ Annual Reports of Publicly Traded Companies Selection of Companies for SMB Focus SurePath SMB Index T h e S u r e P a t h S M B I n d e x Final Selection of 37 Companies 30
  • 31. 2 0 1 9 C h a n g e s t o S M B I n d e x surepathcapital.com31 During the first quarter of 2019 we added 6 relevant companies that IPOed. These are companies that are making it easier for SMBs to move faster (Dropbox and DocuSign), gather feedback from customers and employees (SurveyMonkey), improve the current and prospective employee experience (Ceridian), sell to customers easier and more efficiently (Lightspeed), and more. 8 of the original constituents of our SMB Software Index were removed during this period following the completion of their acquisition. ShoreTel (acquired by Mitel), Web.com (acquired by Sirus Capital), FirstData (acquired by Fiserv), and Mindbody (acquired by Vista Equity Partners).
  • 32. surepathcapital.com I n d e x C o n s t i t u e n t s 32
  • 33. surepathcapital.com 80% 100% 120% 140% 160% 180% 200% 220% 240% SurePath SMB Index S&P 500 Nasdaq Dow Jones S u r e P a t h S M B S o f t w a r e I n d e x • All 37 companies are weighted based on Market Cap and indexed at January 4, 2016 • 35 of the 37 companies are part of the $1 billion market cap club (a club we expect will grow over time) • The companies on the SCP SMB Software Index have a combined market cap in excess of $395B 33 Company Ticker Market Cap (billions) Automatic Data Processing, Inc. ADP $69.85 Intuit Inc. INTU $67.80 Square, Inc. SQ $31.49 Paychex, Inc. PAYX $29.02 Atlassian Corporation Plc TEAM $26.66 Shopify Inc. SHOP $21.96 GoDaddy Inc. GDDY $13.07 Paycom Software, Inc. PAYC $10.73 Sage Group plc LON:SGE $10.16 DocuSign DOCU $9.15 Dropbox DBX $9.03 Zendesk, Inc. ZEN $8.85 RingCentral, Inc. RNG $8.64 ANGI Homeservices Inc. ANGI $7.77 Ceridian CDAY $7.29 GrubHub Inc. GRUB $6.48 HubSpot, Inc. HUBS $6.50 New Relic, Inc. NEWR $5.52 Wix.com Ltd. WIX $5.63 H&R Block, Inc. HRB $5.07 Xero Limited. ASX:XRO $4.94 LendingTree, Inc. TREE $4.71 Qualys, Inc. QLYS $3.16 Yelp Inc. YELP $2.90 AppFolio, Inc. APPF $2.79 Cimpress N.V. CMPR $2.56 Groupon, Inc. GRPN $2.03 SurveyMonkey SVMK $2.23 Deluxe Corp. DLX $2.01 Eventbrite EB $1.64 Shutterstock, Inc. SSTK $1.66 Stamps.com Inc. STMP $1.41 LightSpeed POS LSPD $1.30 LendingClub Corporation LC $1.37 Endurance International Group Holdings, Inc. EIGI $1.01 Carbonite, Inc. CARB $0.88 Marchex, Inc. MCHX $0.20 $1bn Market Cap Club (in Grey) Market Cap by Index Constituents (in US$ b)
  • 35. surepathcapital.com 2019 will be defined by high IPO volume: There were 9 SMB software IPOs in FY2018; Q1 2019’s IPO count already represents 2/3 of last year’s volume. Public markets make a comeback: After a challenging end of 2018 for public markets, our SurePath SMB index roared ~3x higher than the ~20% gains realized by the major North American indices in Q1 2019. Marchex (MCHX)was the best performer in the index posting a 24% gain and Eventbrite (EB) was the worst performer posting a modest ~1% decline in value. Later Stage VC rounds ramp up for unicorn IPO candidates: PostMates officially announced their IPO just one month after raising another $100M in January. This represents the company’s 3rd raise in the past 6 months. DoorDash raised $785M in 2018 and added another $400M in funding in Q1 2019 with Toast raising $365M over the same time horizon. Business management/ERP continues to be the top category for deals: We continue to see high deal volume and transaction value for SMB business management/ERP software. As more young people start small businesses, they want a modern technology platform to run their business on. Restaurant tech remains the most popular vertical for funding and consolidation: In 2017 and 2018, we saw that restaurant tech was the highest funded vertical which continued in Q1 2019. With many well funded market potential leaders in the space and a sizable yet fragmented SMB market, we expect to see a clear market leader emerge through consolidation who can address every aspect of operating a restaurant. Payments deal activity is alive and well: First Data’s $ 22B acquisition by Fiserv was the largest deal of Q1 2019. T a k e a w a y s & R e c a p 35
  • 36. surepathcapital.com The Leading Financial Advisor in SMB Software EXPERIENCE Funding, growing & exiting tech companies PEDIGREE Alumni of Constant Contact, FreshBooks, Shopify… ACCESS To Tier 1 investors & strategic partners FOCUS The only advisor with a dedicated focus on SMB Software COMMITMENT Helping our clients and their investors succeed T h e S u r e P a t h D i f f e r e n c e 36
  • 37. Danial Shaikh Associate danial@surepathcapital.com 647.876.5453 Erik Mosney Analyst erik@surepathcapital.com 519.239.5759 Mark MacLeod Founder & President mark@surepathcapital.com 416.843.6004 Josh Scherman Vice-President josh@surepathcapital.com 646.420.0074 Toronto • San Francisco Sara Defina Analyst sara@surepathcapital.com 416.689.2474 37 KJ Lee Analyst KJ@surepathcapital.com 647.500.3457