Software was private equity’s favorite investment for years. Recurring revenue, strong margins and steady growth made it an ideal LBO target.
But Airtable’s sale at nearly 80% below its 2021 valuation shows how dramatically the software playbook has flipped:
Software valuation multiples have compressed
Lower marks are pressuring PE portfolios
Pressure to return capital is driving difficult exit decisions
Read the full breakdown below.
This Week’s Data
Airtable’s 80% Fall
On Tuesday, Bending Spoons agreed to acquire Airtable in an all-cash deal valuing the business at $1.3 billion. This translates to an implied equity value of $2.25 billion.
Why is this big news? The acquisition values Airtable nearly 80% below its peak valuation of $11.7 billion in a 2021 funding round.
The SaaS company’s fall underscores the broader struggle facing software today.
Once the darling of the post-Covid market, the sector has undergone a massive valuation reset, which is now being driven by AI disruption fears.
Not All Software Is Equal
As of March 2026, the average revenue multiple for software had fallen below 5.0x, compared to roughly 7.0x in recent years and a peak of 17.0x in 2021.