PitchBook annual revenue renewal rates dropped to 107% in 2024 from 112% in 2023. At a high level, this decline was due in large part to a challenging market environment that limited capital activity and deal making. While 2024 marked some improvement in dealmaking conditions, activity across VC, PE, and M&A remains well below the record-setting levels of 2021. According to PitchBook’s 2024 Annual Global M&A Report, deal count and aggregate value both saw year-over-year gains, but the pace of recovery has been uneven and remains constrained by macroeconomic and geopolitical uncertainty. This translated into continued headwinds for PitchBook. With the economic uncertainty we’ve seen in recent months, the M&A environment remains challenging with very limited activity.
At the client segment level, the decline in annual revenue renewal rates was driven in part by higher churn (and thus lower retention) in our non-core client segments, and in particular smaller corporates who have more limited use cases when dealmaking slows. We also saw some pressure in our core client segments, including with PE and VC firms and investment banks, although overall renewal rates remained stronger within this group. Within our core client segments, we’ve seen some softness in annual revenue renewal rates for smaller venture capital firms with first-time funds or smaller operations. Given the decrease in exit activity and longer holding periods, these firms are having more difficulty raising new funds.
We have not seen a material change in the competitive environment and do not provide guidance on future renewal rates.