There are early signs that the tech ecosystem may be on the road to recovery following a global reset. With the NASDAQ returning to 80% of its peak in just 18 months, the outlook looks brighter than following the 2000 financial crisis when it took 14 years to hit the same milestone. Silver linings are also appearing in the cloud landscape as the Euroscape Index is up 29% year-to-date and multiples are reverting to 10 year pre-covid averages. On the private side, both cloud financing and unicorn creation have converged to pre-covid levels. However, while figures have returned to those seen in 2019, today’s market is in a very different place. GenAI is fueling innovation, funding and new unicorn creation.
Download the Accel 2023 Euroscape report to read more on this year's key SaaS trends and see the full list of 100 SaaS companies to watch.
At a glance
NASDAQ returned to 80% of all time high in 18 months
NASDAQ Composite Index 1999-Present
Euroscape multiples reverting to 10-YR pre-COVID average
NTM Revenue Multiples - Global Euroscape
The Accel Euroscape team
It’s reassuring to see the cloud ecosystem’s resilience and early signs of a new normal settling in. Valuations, investment levels and unicorn creation are now back in line with 2019 levels. That said, today is a very different environment. Companies have moved away from growth at all costs to focus on profitability, and GenAI is redefining the potential of software, bringing the opportunities for enterprise automation and productivity improvement to a new level.
– Philippe Botteri, Partner
GenAI is the major driver of new unicorns, with 60%+ of new cloud/SaaS unicorns over the last 12 months being GenAI native.
Accel’s Euroscape report launched in 2016 when Europe’s cloud ecosystem started accelerating and has been published annually since then. Read previous reports below.
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