The Fastest Growing Software Sectors in 2024
source link: https://tomtunguz.com/fastest-growing-software-category-2024/
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
1 minute read / Jan 29, 2024 / exits /data analysis /financials /
The Fastest Growing Software Sectors in 2024
The fastest growing software category in the public markets is security. Data follows.
Security companies as a group average 29% expected revenue growth in 2024, compared to 23% for Data (or DaaS which stands for data-as-a-service). Fintech & SaaS (horizontal) average ten percentage points fewer expected growth.
Anticipation of this growth propels multiples. Security & data top the charts at on average 10x enterprise-value-to-forward-revenue, compared to 5x for the others.
These two software categories lead buyers’ priorities & are expected to grow at twice the pace of the overall software market.
Reviewing the data deeper, CrowdStrike, Palo Alto, SentinelOne, & ZScaler have seen significant multiple improvement. Only Okta lags a bit which is likely due to some of their internal security challenges.
For now, software buyers view security & data products as highest priority. As a result, these businesses project higher growth rates & fetch more attractive valuations in early 2024.
This dynamic will very likely cascade into the private markets as well with both acquisitions and financings in these categories priced at a premium.
Read More:
AI Drove the Largest New Bookings of Any New Product
Recommend
-
52
27 Shares
-
29
John McAfee is a fan of Dogecoin Crypto influencer and US Presidential candidate John McAfee recently praised Dogecoin for its usage. In a tweet, McAfee shared an article from Coindoo called “Can Dogecoin (DOGE...
-
5
The Fastest Growing Sectors of Startup Fundraising in 2020 Posted on 2021, Jan 18 2 mins read From time to time, I chart the fastest g...
-
8
An interview with Spree Commerce, the fastest-growing open-source ecommerce platform. Peter Curac-Dahl March 23, 2021
-
9
Industry insights How Reliance Jio became the world’s fastest-growing mobile network Telecommunications giant Reliance Jio gained
-
7
Tech boom: How did London become one of the world's fastest growing tech hubs?June 30th 2021 new story5
-
3
Creator & Artist Stories 11 tips from one of YouTube’s fastest gro...
-
8
Instability is at the heart of technology, as new innovations constantly change the game. However, the last couple of years have been especially volatile as interest rates rose, VC funding free-for-alls dried up, and mass layoffs began. No...
-
2
HadriusThe Financial Compliance CopilotFounding Engineer$140K - $200K / 1.00% - 1.80%
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK