Venture Capital (VC) firms are at the forefront of investment in disruptive spaces such as Artificial Intelligence, Machine Learning, Intelligent Automation, CloudTech and DevOps, IOT software, etc. In fact, VC investment in these spaces runs into several billions of dollars, with some of the companies valued well over a billion dollars, putting them in the Unicorn club. However, the VC investor persona is shifting and is at a crossroads with Private Equity (PE) firms, with some reasons for it being non-traditional investor participation, PEs becoming VCs and vice versa, and technology being at the forefront of VC investments.

In the post-pandemic world, as VCs look to minimize risk, they are increasingly making late-stage investments in Enterprise Software. VCs have high investments in Vertical Software companies driven by Financial Services and Insurance. But stunted growth and impacted valuation have reduced the number of new unicorns.

This Persistent-Zinnov joint report on VC investments in Enterprise Software provides a view on the many challenges that Enterprise Software companies are facing, the measures that VC investors need to take to strengthen their existing portfolio, how Enterprise Software companies need to reprioritize their growth levers to fit the new set of challenges. The report also answers pertinent questions such as – What can Enterprise Software companies do to revamp their product strategy to ensure top-line growth? How can these companies ensure faster time-to-market? What new digital technologies do they need to invest in to bring more agility?