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Q3 2025 Enterprise SaaS VC Report

AI-centric SaaS continues to reshape global venture dynamics. This is what Q3 2025 PitchBook report shows us.

While overall deal count has stabilized, deal value remains heavily dependent on AI megadeals, which is an important signal for investors focusing on sustainable long-term categories.

The resurgence of IPOs (Figma, Klarna) is encouraging, yet low valuation transparency indicates persistent pressure on mid-tier companies.

For Finberg, the structural shift toward AI-embedded SaaS, along with early signals of commercialization like OpenAI’s Instant Checkout, represents both risk and opportunity—particularly in vertical-specific solutions and workflow automation.

Below you can find the key takeaways from the report;

1. Enterprise SaaS Landscape (p.3)

The report outlines the major SaaS domains: CRM, ERP, supply chain, analytics platforms, knowledge management systems, and general application software.
The ecosystem remains broad, with AI-enhanced platforms integrated across all application categories.

2. Market Map (p.4)

PitchBook provides a visual overview of venture-backed SaaS companies across CRM, SCM, ERP, analytics, and security subsegments. Subsegments include marketing, human capital management, digital commerce, enterprise search, and more.

3. Quarterly Analysis & Key Takeaways (p.5–8)

3.1 Funding & Market Dynamics

  • VC deal value increased 28.3% QoQ, but entirely due to a single megadeal:
  • xAI’s $10B raise, representing one-third of total quarterly value.
  • Without xAI, deal value would have declined 13.9%, revealing structural softness.
  • Deal count stable at 829, consistent with the past four quarters.

3.2 Exit Environment

  • Exit value surged 206.6% QoQ, driven by:
    • Figma IPO ($15.7B)
    • Klarna IPO ($14.9B)

Despite large IPOs, valuation disclosures remain low at 26.7%, signaling a weak environment for average sellers.

3.3 AI Integration Themes

  • AI is now a core operational layer, not an add-on:
  • Microsoft Dynamics CRM showed outsized AI-driven growth.
  • Hyland’s KMS added AI search and discovery capabilities.
  • Alvys raised $40M for AI-driven transportation management.
  • OpenAI Instant Checkout marks a shift from discovery → conversion, potentially challenging traditional e-commerce funnels.

3.4 Regulation

  • New FASB guidance will change how software companies capitalize R&D under modern agile development.

4. Segment-Level VC Activity (p.8–12)

  • ERP dominates with the highest 12-month deal value ($30.3B).
  • Other application software extremely elevated ($75.4B TTM), driven by AI megadeals.
  • Deal size and valuations increased moderately across most stages (seed → growth).

5. Heatmaps & Subsegment Trends (p.14–16)

  • Highest YoY growth in:
    • Enterprise search (833% YoY)
    • Project & portfolio management (178%)
    • Procurement & sourcing (164%)
    • CRM and ERP subsegments show mixed performance with declining deal counts but positive value growth.

6. Key Deals (p.17–18)

  • Early Stage
    • Sirius AI – $235M
    • Reka – $110M at $1B post-money
    • Shop Circle – $100M
    • Augment – $85M
  • Late Stage
    • xAI – $10B
    • Cohere – $600M
    • Ramp – $514M
    • Rapyd – $500M
    • Sierra – $350M

7. Major Exits of 2025 (p.19)

  • Largest exits include:
    • Figma IPO – $15.67B
    • Klarna IPO – $14.89B
    • Moveworks (M&A, $2.85B)
    • Regrello (M&A by Salesforce)

8. Top Investors & Acquirers (p.20–21)

  • Top VC investors since 2018: Alumni Ventures, Insight Partners, Accel, Sequoia, A16Z.
  • Top strategic acquirers: Fullsteam, Descartes Systems, Salesforce, Verisk.

Source: Pitchbook Q3 2025 Enterprise SaaS VC Trends

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