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The Story: Accel, a leading venture capital firm with investment history in companies like Facebook, Slack, and Dropbox, has just released its Euroscape 2023 report. It tracks the trends in SaaS company development, and what to expect from the future of the tech ecosystem.

Data from Euroscape 2023 finds that the tech industry could be on the road to recovery. For instance, in 2000 during the financial crisis, the NASDAQ took 14 years to return to 80% of its peak. In 2021, after the collapse caused by the pandemic, it took just 18 months to reach that same milestone – climbing to that 80% figure in May of this year.

And there are other signs of a recovering tech market too, according to the report. They include stabilized interest rates, declining inflation, low unemployment rates, signs of an IPO window reopening, and M&A regaining momentum with deals such as Splunk’s $29B and Adenza’s $10.5B acquisitions.

Euroscape 2023 also looks at the future of GenAI and how it’ll impact enterprise SaaS companies through six important ways:

1. The emergence of specialized applications

2. GenAI-powered media creation

3. GenAI tooling and infrastructure

4. Intelligent automation

5. Companies transitioning to the modern data stack

6. New cybersecurity features.

The Expert Take: Philippe Botteri, partner at Accel, thinks there are two reasons why the Nasdaq recovery in 2021 was so much faster than in 2000:

1. Tech and software have become part of every business.

2. The emergence of generative AI, which is fueling the next wave of innovation for any piece of software.

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