VC funding for ERP sector to remain robust

 

Venture capital funding for enterprise resource planning (ERP) startups is expected to remain strong as global companies are expected to spend $46.86B on ERP software this year, up from $44.72B in 2022.  ERP software has the ability to generate cost savings for corporates, making them an attractive value proposition, especially during periods of economic headwinds. Additionally, corporates have to invest in ERP systems to upgrade legacy software and increase cross-functional connectivity.  The ERP sector defied the venture funding pullback last year, ending the year with $23B in capital.  The sector raked in a 37% share of the $62.4B invested in cloud-based business software startups.  ERP software is critical to the company's supply chain and financial transactions, per Stokke CEO Jacob Kragh.  Notable startups in the space that secured funding recently include Belgian startup Thynk, which raised a $13M Series A round in April, and procurement-focused ERP startup Zip, which raised a $100M round in May.