Addressable market: For PitchBook, could you please provide a breakdown of the ~50,000 firm addressable market by firm type (per above: venture capital, investment bank, private equity, lenders/debt providers, law firms, accounting firms, etc.) and PitchBook’s estimated penetration within each firm type/vertical (i.e. venture capital, investment bank/intermediary, etc.)? Could you also provide a breakdown of this addressable market by geography if available?

June 11, 2021

We estimate that our total addressable market is $3.5 billion globally, an increase of approximately 52.2% since the $2.3 billion figure we shared at the 2020 Annual Meeting. Two primary reasons account for the increase: growth in the number of firms included in the Other Investor and Company categories as well as an increase in average revenue per client. As the private markets have become more influential, our pool of potential clients has expanded as more participants engage with PitchBook-supported use cases. As such, use case assumptions feature prominently in our TAM methodology. In order to be included in the TAM, a firm must be active in at least one use case that PitchBook supports (two use cases for Companies). Examples of use cases include comps and valuation work, deal sourcing, market intelligence, raising capital, etc. Incorporating use case assumptions into both our client count and average revenue per client assumptions assures that our estimate of the total addressable market accurately captures prospective clients that are “ready” to fully benefit from PitchBook’s offerings instead of simply representing a “wish list” of clients for whom our offerings may or may not resonate . We do not disclose our estimates of the TAM by geography.

Our Core Investor client segments, which include private equity, venture capital, investment banks, and other investors, currently represent about 34% of the client count assumption we use to size the market, Other Service Providers represent about 28%, and Companies represent about 27%. While still a relatively small percent of our client base, we have also seen strong growth with Limited Partners and continue to build new data, research and features that target workflows specific to this client type. While we do not disclose the exact estimates of our penetration of each category, it is fair to say that our penetration in the Core Investor client segments average in the high-teens for private equity, venture capital, and investment banks. We estimate that within Other Investors, a newer customer category, we have penetration in the mid-single digit range. The same holds true for Other Service Providers and Companies.

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