Application Development & Deployment – March 2021

Automation, Interoperability, and Security Drive AppDev & Deployment Growth

Capstone’s March 2021 Application Development (AppDev) & Deployment Industry Update is now available, highlighting how COVID-19 has placed heightened focus on digital solutions with the continuation of remote work, expediting executives’ timelines for digitizing internal processes, products, and services. To meet demand, AppDev & deployment companies have scaled organically and inorganically through mergers and acquisitions (M&A). Private equity (PE) firms have applied buy-and-build strategies to their existing AppDev & deployment portfolio companies, a trend mirroring the greater M&A market. Capstone spoke with Silversmith Capital Partners in an exclusive interview to discuss industry trends and AppDev & deployment investment strategies.

Included in this report:

• The global trend toward digitization is driving demand for more software developers, which creates greater opportunities for AppDev providers to sell product into growing information technology departments across the business landscape.
• While M&A volume across the overall middle market declined in 2020, the AppDev & Deployment industry increased by 78% year-over-year (YOY) due to the acceleration of digital transformations.
• Venture capital transaction volume increased by 28% in 2020 YOY due to an influx of startups requiring seed funding to scale operations