1Q4 2020 Software Sector Update: The pandemic has had a profound impact on the software ecosystem, with clear winners and losers from a vertical standpoint. However, the shift to digital that came from becoming more 'remote' and 'virtual' is here to stay, and software companies are set to be the big beneficiaries of this trend. Deal activity picked up significantly in Q3 and Q4 2020, representing the bullish outlook of many software businesses keen to add products and services that will build-out their offerings in the new world we live in. We expect significant appetite for inorganic growth in 2021 as public valuations continue to increase, leading to more affordable deals and private companies raising larger rounds to capitalise on COVID-19 tailwinds. We also expect to see a number of SaaS businesses go public to capitalise on soaring investor demand and public valuations.