The New Era in Tech Investing Starts Now

Bain & Company

David Lipman

Research

11 Pages

Bain & Company explains why software private equity needs a new playbook as growth slows and AI changes the economics of SaaS. Revenue growth that was around 20% annually is now closer to half that, while NRR has fallen about 8 points since 2021.

Key Takeaways

Software Growth Slowed: Median revenue growth for U.S. public software companies fell to 10% in 2025, down from 27% in 2021.
AI Metrics Matter: Zendesk generated $200 million of AI ARR, reached 20,000 AI customers, and handled nearly 800 million AI interactions in 2025.
Returns Face Pressure: Postpandemic tech buyouts show 2.1x gross MOIC versus 2.9x for 2010 to 2019 entry years.
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