European and UK companies see strongest valuation growth YoY

Welcome to the latest edition of the Silverpeak Benchmark report – Application Software Sector, a review of key company valuation metrics in the US, UK and European application software sectors. By reviewing sector median averages, our aim is to provide a set of software industry benchmarks against which individual company performance can be measured.

Report highlights

  • Although revenue multiples of US software companies continue to be higher than the rest, Small & Mid Cap UK and European companies have shown much greater Y.o.Y growth.
  • There has been an overall increase in revenue multiples this quarter with the exception of US Vertical which reached a peak of 10.6x at the start of September and fell substantially by the end of Q3.
  • EBITDA multiples for UK and European software companies continue to rapidly increase and outperform the US companies on Y.o.Y growth. European software multiples increased by 11% Q.o.Q reaching US Vertical levels for the first time since 2016.
  • Even though HR tech continues to have a significantly higher median enterprise index value than the other verticals, the median EV has fallen by 5% in Q3.

Silverpeak Benchmark Report Q3_2021


The State of the Market for Series B & C Rounds in European Tech Companies

Silverpeak has updated its research into Series B & C round in European Tech Companies.

Key takeaways:

  • Series B & C investment in European tech companies sky-rockets with total capital invested in H1 2021 increasing 115% on H2 2020, Q3 2021 increasing 170% to €7.2bn, compared to Q3 2020
  • Proportion of larger rounds continue to rise: the proportion of B rounds exceeding €20m increased to 65% and C rounds exceeding €50m increased to 62%
  • The median value of C rounds has increased significantly to €82m, double H1 2020, due to a series of mega-rounds
  • UK companies continue to receive the largest share of European investment  – 29% by value and 31% by number
  • The largest C round investment in 2021 YTD was €810m, approximately 3x larger than the biggest C round in 2020
  • Europe continues to generate outstanding tech companies, attracting 39 mega-rounds in excess of €100m to Q1 – Q3 2021

Paddy MccGwire, Managing Partner, commented that “The extraordinary step change in investment by number and value in 2021 is set to continue as fund ’dry powder’ is accompanied by a proliferation of new and existing players announcing fresh funds”


B&C Rounds Research Silverpeak