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    INVESTMENT BANKING  |  3 POINT PERSPECTIVE

    3 themes likely to dominate tech dealmaking in 2024

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    Contributor: Kristin Roth DeClark

    07 Dec 2023

    authorImage

    Contributor: Kristin Roth DeClark

    07 Dec 2023

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    Kristin Roth DeClark, Global Head of Technology Investment Banking, explains why she believes tech CEOs and Boards should remain nimble to take advantage of market windows for financing and to enhance AI capabilities as opportunities emerge.

    1. Macroeconomic conditions create a tech deal backlog

    Investors don't like uncertainty. And uncertainty in the current macro environment has made it more challenging for capital raises. Everything from rising interest rates to geopolitical instability.

    As such, many private technology companies have had to get creative with their financing alternatives or change their business models to focus on preserving cash. This has also led to a growing technology IPO backlog.

    2. Reasons the IPO window is likely to open

    We've only had five technology IPOs this year. Two IPOs last year. And typically, we see 40 technology IPOs in a year. Investors will continue to prioritise profitability over growth, but we expect to see a meaningful increase in technology IPO volume in Q2 of 2024.

    At that point, we'll have the benefit of 2023 full year financials. We'll hopefully have more stabilisation on the geopolitical front, and we’ll have more confidence in the direction of interest rates. And we expect companies to take advantage of this IPO window leading up to what could be a more volatile time ahead of the US election in November.

    3. AI fever may drive M&A and financing activity

    With the rapid advancement of AI, CEOs and boards are trying to figure out how to best implement it for their businesses. The two biggest applications are one, improving efficiency and two, accelerating the speed of innovation.

    Companies have the decision: do they build or do they buy? And as such, we expect to see M&A volume pick up as companies look to buy AI-driven assets.

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    About the expert

    Kristin Roth DeClark

    Global Head of Technology Investment Banking

    Kristin Roth DeClark is the Global Head of Technology Investment Banking at Barclays, overseeing the firm's coverage of technology clients worldwide across all capital markets products and M&A. She sits on the firm’s Investment Banking Management Committee. Ms. DeClark's career in investment banking spans over 20 years, largely focused on financing technology clients. Prior to her current role, she served as the Co-Head of Global Capital Markets, where she was responsible for Barclays’ capital markets businesses globally, including Equity Capital Markets, Debt Capital Markets, Leveraged Finance, Securitized Products, and Derivatives. Before that, she held the position of Co-Head of Equity Capital Markets (ECM) in the Americas and Global Head of Technology ECM. Ms. DeClark joined Barclays in 2019, and prior to that, she held several senior roles in ECM at Deutsche Bank and Credit Suisse, including serving as the Global Head of Technology ECM at Deutsche Bank from 2015 to 2019. Throughout her career, Ms. DeClark has financed numerous high-profile technology companies including more recently companies such as AvidXchange, BigCommerce, Compass, Definitive Healthcare, First Advantage, GoodRx, LegalZoom, Mobileye, Poshmark, PowerSchool, Procore, Rent the Runway, Rivian, ThredUp, and ZoomInfo. Ms. DeClark earned a B.S. in Commerce from the University of Virginia's McIntire School of Commerce.

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