The B2B software market faces a correction phase amid economic uncertainty, with cybersecurity and infrastructure software showing resilience
Written by :
Benjamin Forlani
Julien Fouché
August 4, 2025
With Q1 2025 wrapping up, the team has been conducting a deep review of the B2B Software & Technology universe, leveraging our continuous monitoring of 260+ publicly listed B2B Software companies in North America and Europe.
Key takeaway for Q1 2025 is a strong correction in the B2B Software space, in line with broader market negative performance, but showing that technology is not immune to macro and geopolitical tremors. The only technology segments that we have seen emerge in positive territory in Q1 2025 have been cybersecurity and infrastructure software, that are showing continued heat and resilience, at the back of the continued Cyber adoption trend and the AI push support the infrastructure technology layer.
The end-Q1 2O25 Market Session highlighted a correction in the B2B software sector, with public markets reacting to economic uncertainty. While most segments declined, cybersecurity and infrastructure software remained resilient.
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The software market entered a correction phase in early 2025, with major indices like the S&P 500 and NASDAQ declining. The B2B software sector followed this trend, with valuations decreasing amid concerns over U.S. policy uncertainty. Year-to-date, software stocks are down approximately 10%, signaling a shift in investor sentiment.
Within the sector, cybersecurity and infrastructure software have demonstrated relative strength, benefiting from sustained demand, particularly in AI-driven solutions. In contrast, segments linked to public spending and real economy sectors have shown signs of weakness. The valuation of software companies has adjusted accordingly, with the average EV/EBITDA multiple dropping from 6.2x in February to 5.8x in April.
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