Watch part 2 of our latest market research video
• 1 minute read
Unlocking Growth Potential in Software Investment
Watch the full video to learn more about the growth potential of the software sector.
Hg's Head of Research, David Toms, has done a thorough market research and shares his insights on the Future of AI and a decade outlook of the impact on Hg's portfolio companies.
To summarize, read through the Q&A below.
What common mistake have software investors made regarding growth trends? |
Investors have often underestimated the durability of growth, focusing more on spotting new trends rather than recognizing the strength of existing ones. |
What is the current demand for software in advanced markets? |
Despite excitement around new technologies like AI, the underlying demand for software remains largely unfulfilled in advanced markets. |
What opportunities exist for increasing software usage in developed markets? |
There is significant upside potential in getting existing customers to use more technology and in expanding the user base within developed markets. |
What insights can be gained from different countries in Europe regarding software penetration? |
Countries like Denmark show nearly 100% penetration of accounting software among small businesses, highlighting the potential for growth in other countries with lower usage rates. |
What challenges do companies face if they do not go digital? |
Companies that fail to adopt digital practices risk losing competitiveness and may even struggle with basic operations like filing tax returns. |
What role does AI play in the current technological landscape? |
AI is seen as a significant tailwind, contributing to advancements and opportunities in various sectors. |