"Flawed but fixable" tech companies

Welcome to The Transcript.?Each week, we mine our interview transcripts with software buyers to reveal their insights on specific companies and tech markets.

Yardstiq?is a new product from?CB Insights?that connects you with 1000s of analyst-led interviews with software buyers. In today’s edition of The Transcript, we’re highlighting how software buyers are mitigating third-party risk.

Lick your chops

Last week, we highlighted how private equity investors are salivating.

Why?

Here’s a quick recap: there are a ton of “flawed but fixable” technology companies out there.

To illustrate, 86% of tech unicorns in the US have actually grown headcount in the last 12 months.

As we previously noted, for PE investors who've been waiting for rationality to come back to tech valuations, there are going to be a lot of tech companies that will come to light in coming quarters who have:

• Great products
• Solid revenues
• An upside-down cost structure with some easy fixes via more prudent spending
• Exhausted management with an insurmountable preferred equity stack who are working for their VCs
• Tired VC investors who don't see a shot at the co becoming a 10x'er

Cue PE swooping in.?

Private equity’s focus on tech isn’t new, however. We mined Yardstiq’s interviews for insights on PE’s role in the software buying landscape.

And keep reading for our maps of leading PE firms’ top tech priorities.?

Concerns about service level cuts and price increases

Atrophying acquisitions? CircleCI customer passes on Travis CI

Focus on cutting spend pushed this buyer to Planhat over Salesforce’s Einstein?

One platform to rule them all in home services? Common integration is key

Pick your players?

Where are PE firms betting big in tech??

Earlier this month, we mapped out Thoma Bravo’s top priorities.?

Dig into our latest investment thesis map for Vista Equity here.?

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