This quarter’s CEOBarometer marks the start of a new year with a UK tech sector still operating in a tough environment – but with clearer signals about where value creation will (and won’t) come from over the rest of the decade.
Growth across Software and ICT Services remains constrained after a disappointing 2025, capital markets continue to underserve the sector, and deal activity is selective rather than expansive. Against that backdrop, we step back from short-term forecasts and focus on the six strategic themes Megabuyte believes boards must prioritise in 2026 – from AI market impact and pricing models to organic growth, people strategy, and the future shape of M&A.
We explore why tactical AI initiatives are no longer enough, how deflationary dynamics are reshaping Software and Services business models, why traditional roll-up strategies face diminishing returns, and what the “AI Goldilocks period” really means for long-term value creation. As ever, we ground the discussion in hard data on growth, valuations, capital flows, private equity, venture capital, and M&A.
The episode also looks ahead to Megabuyte’s 2026 events programme, where these themes will be explored in depth across specific markets and sectors.
Timings
00:40 – 2026 Key Trends for 2026:
Six priorities for boards in 2026, with AI reshaping strategy, pricing, growth, people, and M&A.
22:59 – Growth & Trading:
2025 underdelivered across Software and ICT Services, with modest improvement emerging late in the year.
32:11 – Capital Markets:
Valuations remain low, IPO and fund-raising activity scarce, and de-equitisation accelerating.
42:06 – Private Equity:
Capital remains available for high-quality assets, but selectivity has increased sharply.
49:42 – Venture Capital:
Fewer deals, stable capital volumes, and continued pressure at the early stage.
56:20 – M&A:
Lower volumes, reset valuations, and a shift toward more strategic, capability-led deals.
