April 2019 SMB Software Venture Deals

Venture Capital

MAY 14, 2019 - Erik Mosney

Each month, we look at funding activity for startups serving the SMB space. See last month’s post here. To learn more about SurePath’s SMB software focus and our SMB Software Thesis, send us a message at info@surepathcapital.com.

SMB software companies raised ~$1.6B across 74 deals this past April, representing the second largest month for total deal value in 2019, falling short of February’s ~$2.2B. Deal volume in April remained at a similar pace to Q1, coming in between 70–80 deals per month for the fourth consecutive time this year.

Deal Count, Size & Segmentation

Source: Pitchbook
 
Source: Pitchbook
 
Source: Pitchbook

Largest Deals

Source: Pitchbook

Divvy raised the largest round this month, adding $200M to their balance sheet with a Series C deal led by New Enterprise Associates.

Founded in 2016 in Lehi, Utah, Divvy operates a business expense management platform for small and medium-sized businesses with the elimination of formal expense reports being the core of their value proposition. In addition, the platform allows companies to issue credit cards and control spending limits with an easy to use dashboard and mobile app. Divvy earns money from the credit card payments made on its platform.

This round has bumped up Divvy’s total equity capital raised by ~4.5X to $245M and they have more than tripled their valuation since their Series B round in July of 2018.

Erik Mosney
Written By:
Erik Mosney is an Analyst at SurePath Capital Partners focused on supporting clients through the technical aspects of M&A and capital raise transactions, assessing new opportunities for SurePath and compiling market research. His past experience includes providing investment banking services to high-growth clients in the retail and technology sectors.

About SurePath Capital

Based in Toronto and San Francisco, SurePath Capital Partners is the only investment bank focused exclusively on the global SMB software market. We work with sellers in this market to ensure they are funded for growth and positioned for meaningful exits. In addition, we work with buyers in this market to help shape their strategy and execute acquisitions.

Follow us on LinkedIn and Twitter for regular updates on deals and trends and in the SMB software market. Say hello: info@surepathcapital.com

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