Acquirers target venture-backed startups lacking recent funding
Analysis shows a trend of acquisitions involving startups that have not raised new capital in over four years, often at valuations significantly below their previous peak levels.
A recent data analysis by Crunchbase reveals that numerous startups lacking new investment for at least four years are increasingly becoming acquisition targets. The trend suggests that a multi-year funding drought does not necessarily preclude an exit for well-established private companies.
Recent high-profile deals include Uber’s $2.3 billion acquisition of catering platform ezCater and Bending Spoons’ purchases of collaboration tools Miro and Airtable. Many of these acquisitions are occurring at valuations substantially lower than the peak levels achieved during the market boom of 2021 and 2022.
Companies in this cohort have largely survived by reducing operating costs to extend their remaining cash reserves rather than seeking down rounds. While current acquisition prices may fall short of original unicorn valuations, they provide a structured exit for companies struggling to secure fresh venture backing in the current climate.