As established companies look to remain competitive and extend their life cycle, acquisition becomes a more viable and attractive strategy.
Not the only one1, but surely the fastest route in a world when time is the most valuable resource.
M&A deals are a boon for startups as well. No exit, no party, as we’re used to saying. While launching a thriving self-supporting business is still the end-goal for any startup, a buyout from a large company can render that problem irrelevant—or at least less urgent. And return the capital to investors, hopefully with a decent multiplier, thus, M&As are a key component of the startup economy.
The M&A market is large and complex and coming to grips with it from a macro point of view requires looking at a very big picture that can be quite intimidating at times. This involves asking some key questions: Are there worldwide trends we can find for startup exits? What are the conditions under which companies sell and buy, and how do they change by region? Who are the top startup acquirers and where do they come from? Which industries are more active? Which technologies and verticals are attracting the interest of buyers? What is the typical profile of a startup that makes it all the way to the exit?
In seeking to answer these questions Mind the Bridge has dug even deeper into the Crunchbase database to try to collect more data points and trends.
The result is our new report, “Tech Startup M&As”, which will as usual be presented at the European Innovation Day Conference on September 11th in Mountain View (CA), the flagship event of the fourth edition of Startup Europe Comes to Silicon Valley.
SEC2SV is an annual week-long program that brings together entrepreneurs, managers, investors, and policy-makers from both sides of the pond work together to identify best practices and practical ways to foster innovation. This report seeks to inform and advise participants with the best possible information and analysis in order to encourage effective solutions and outcomes to the conference.
ALBERTO ONETTI, Chairman, Mind the Bridge
GENÉ TEARE, Head of Content, CrunchBase