Serial Acquirers Market Update: OpenText Reports Q2 2025 Earnings and Vancouver-based VC Firm Raises $54 Million
Earnings Results Trigger Volatile Trading Day and Strategic Investments Propel B2B SaaS Canadian Startups
OpenText Reports Q2 2025 Earnings in Volatile Trading
OpenText, an information management serial acquirer, reported its Q2 2025 earnings results last week, leading to a volatile trading day where the share price initially rose by 7.3% before quickly falling 13% by market close.
OpenText’s stock price has struggled over the last few years. Once trading at a high of $69 CAD in 2021, it has since declined and hovered around the low $40s for the past six months. Unlike other high-flying SaaS serial acquirers—like Constellation Software, which trades at high multiples due to their explosive growth rates—OpenText trades at a conservative low-teens multiple, reflecting its relatively lower growth rates.
While OpenText reported solid Q2’25 results relative to analyst expectations, especially in terms of profitability, it also lowered its 2025 revenue target by $130 million USD, citing product and foreign exchange headwinds.
Over the past year, the company has been taking measures to right-size its operations. In May 2024, OpenText completed the divestiture of its Application and Modernization and Connectivity Business for US$2.3 billion—a significant portion of its current $7.5 billion USD market cap—to reduce debt and focus on other business segments.
Unlike programmatic serial acquirers like Constellation Software that acquire many smaller companies, OpenText has focused on making fewer but larger transactions in recent years. While it remains to be seen whether OpenText can accelerate its growth, it’s a prospect I’ll be closely monitoring.
GTMfund's $54 Million Fund II: Positioning Canadian B2B SaaS Startups for Success with Strategic Marketing and Sales Expertise
GTMfund, a venture capital firm based in Vancouver, presents a new opportunity for Canadian B2B SaaS startups after successfully raising $54 million USD for its second venture capital fund. With plans to expand its Canadian team, GTMfund has attracted over 300 operator LPs and has already deployed more than twice the capital in Canada through Fund II compared to Fund I.
Recognizing that funding alone is insufficient for startups, especially as technology moats lose their competitive edge, GTMfund emphasizes the importance of effective marketing and sales strategies over merely relying on producing a good product. What makes GTMfund unique is its LPs, who possess extensive experience at successfully scaling software companies and in marketing and sales.
With plans to support approximately 40 startups through Fund II, GTMfund has already invested in six Canadian companies and is eager to expand its portfolio. This development marks an exciting opportunity for Canadian B2B SaaS startups to achieve their full potential with GTMfund's backing.
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