March 2026 Market Intelligence

Monthly Insights on the B2B Software Market

Every month, we publish a deep market intelligence briefing for investors and executives tracking the global B2B software ecosystem.

Our March 2026 Market Update highlights a turning point in the sector: valuations continue to compress sharply, AI capital is concentrating in mega-rounds, and investors are increasingly differentiating between software categories exposed to disruption and those benefiting from the AI infrastructure cycle.

• The data is striking: the B2B software universe declined 8.3% in February, significantly underperforming major indices, while EV/Sales multiples have dropped to 4.2x, their lowest level since 2017.
• At the same time, venture capital activity has been dominated by a handful of massive AI financings, with investments in companies such as OpenAI and Anthropic pushing total VC deal value above the entire 2025 total only two months into the year.
• Against this backdrop, investors are increasingly reassessing where durable value remains across the software stack.

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Download the full March 2026 Market Intelligence briefing to access the complete analysis and data behind this month’s insights.

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What we analyze in this month report

Market performance and valuation compression

Software equities continue to lag broader markets, with nearly all segments declining and valuation multiples approaching multi-year lows. We analyze the structural drivers behind this reset and how the market is re-pricing growth versus profitability.

The shift in AI disruption across software segments

This month’s deep dive focuses on Office of the CIO / CTO software, where AI-driven innovation is reshaping DevOps, IT operations and observability. Our analysis highlights which categories are most exposed to disruption and which may prove structurally defensible.

Deal activity and capital concentration

While private equity and corporate M&A activity are starting the year cautiously, venture capital investment has surged due to unprecedented AI funding rounds, creating a highly polarized funding environment.

The emerging winners of the AI infrastructure cycle

Infrastructure and observability platforms appear increasingly attractive relative to application-layer software as demand for AI compute, monitoring, and security expands.

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Why this matters

The B2B software sector is entering a new phase of the cycle where valuation compression, AI disruption, and capital concentration are reshaping investment opportunities. Understanding where value is shifting across the software stack is becoming critical for investors, operators and technology strategists.

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Download the full March 2026 Market Intelligence briefing to access our latest data, analysis and sector insights, or contact our team to discuss the findings in more detail.