A middle market comeback: At $374 billion in total, PE dealmaking in the middle market last year had one of its best years ever. Exit activity also rebounded. We dive into the data and much more in our new report. Read it here.
VC exits stuck in limbo: As an IPO rush seems further and further away, our new quantitative research examines the historical features of IPO-ready companies and their exit potential today. Read it here.
Private credit sneak peek: Our all-new US Private Credit Monitor is a client-only monthly report that covers trends in direct lending market issuance, spreads, key drivers, and more. Non-clients can read the debut edition for free.
Tech updates: Preview our new premium research on VC trends in biopharma, mobility, and information security. |
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A new buyer profile for VC-backed companies
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"Who are the buyers?"
A client asked an honest question about the relatively high number of acquisitions involving VC-backed companies in recent years. While the numbers aren't extraordinary, they're estimated to exceed 900 in 2024, which is higher than expected.
It's certain that Big Tech is not leading this acquisition spree.
Currently, more than one-third of acquisitions are made by other VC-backed companies, marking the highest proportion recorded in our datasets. The past few years have seen the most activity from these VC-backed buyers.
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We expect VC-backed buyers to stay active. |
This growth in the venture market has given rise to a new buyer profile: VC-backed unicorns with significant cash reserves and an appetite for expansion.
Amid the trend toward "profitability," it is important to remember that growth remains essential and serves as a key motivating factor for these buyers. Whether their ultimate aim is an IPO or staying private for now while raising liquidity for early investors, delivering growth for investors—both new and existing—remains crucial to achieving that goal.
It's possible that the recent scarcity of unicorn IPOs may have artificially inflated these figures. In more typical exit environments, we would have expected many of these buyers to list their shares.
Nonetheless, the era of VC-backed buyers is likely to continue. Significant amounts of capital are still being deployed in the market, even if that capital is more concentrated. The high number of VC-backed companies also creates numerous opportunities for consolidation.
While acquisitions by VC-backed companies may not often dominate the headlines, they are becoming an important aspect of the venture capital liquidity narrative.
For more analysis, read our new research: VC-Backed Companies Taking Advantage of Slow M&A Market
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VC deals were particularly impacted, with deal value and deal count declining 31% and 16% YoY, respectively.
Our report highlights market dynamics unique to the landscape, including the impact of non-domestic investors:
Read the free report
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MENA Private Capital Breakdown
The MENA region's private capital landscape mirrored global trends in 2024, with PE and VC dealmaking declining YoY but rebounding in Q4.
Tech investment remained strong, reinforcing MENA's competitiveness in the fintech and digital sectors.
But how have exits and fundraising fared?
Read the free report
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Last year, early-stage startups such as Treetoscope and Lumo successfully secured follow-on funding, suggesting continued investor confidence in these technologies.
Our latest analyst note examines how precision irrigation solutions are becoming essential for maintaining food production in water-stressed regions:
Read a free preview
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Stablecoins
Stablecoin momentum is building as top banks and asset managers look to adopt fiat-backed stablecoins.
Stablecoin networks handled over $5.6 trillion in volume last year, and total circulating supply eclipsed $220 billion.
Our new research explores the impact of that growth:
Read the free research
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The Techbio Investment Ecosystem
Techbio venture capital is undergoing a strategic transformation, with investors emerging as the definitive architects of the sector's future.
Our new report highlights how tech VC firms, including a16z and Pear VC, are expanding their influence:
Read the free research
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