As overall economic challenges continue to mount, new negative indicators and the potential for further supply chain disruptions are causing broad market and tech sector-specific corrections. Sourcing tech companies aren’t immune to the pain — but they’ll likely have more bright spots than a typical SaaS stock to ride out the downturn.
Indeed, the startup scene for sourcing technology remains vibrant, and despite macro challenges facing the broader tech sector and stagflationary pressures affecting the countries where sourcing organisations operate globally, new ideas and concepts are gaining traction (and gaining investment).
In our work supporting procurement/finance organizations’ technology selection and due diligence with private equity and corporate development teams (and in our discussions with early stage investors), we believe that procurement technology will still be a success – albeit with This comparison is likely to be milder due to three key factors, and the economic situation is stronger.