For a startup, promoting to a different startup isn’t the basic exit technique. Nonetheless, knowledge exhibits it’s a frequent path, particularly as of late with the rise of deep-pocketed, ultra-high-valuation unicorns.
Up to now this 12 months, greater than 500 seed- or venture-backed non-public firms throughout the globe have offered to different non-public, venture-backed firms, per Crunchbase knowledge. Essentially the most prolific acquirers embrace most of the most well-known and beneficial unicorns, together with OpenAI, Databricks and Anthropic.
Total, the tempo of dealmaking in 2026 appears to be like comparatively flat 1Reported deal counts are down barely this 12 months from the comparable interval, however are more likely to even out extra over time as some acquisitions, significantly smaller offers, are added to the dataset weeks or months after they shut.2 in comparison with final 12 months. That’s not fully stunning on condition that general market circumstances haven’t modified dramatically. The variety of tech startup IPOs stays beneath regular. Scorching venture-backed AI firms are nonetheless sustaining unheard-of valuations. And the rise of megarounds means favored startup acquirers are flush with money.
Startups shopping for startups in recent times
In whole, not less than 440 funded startups offered to different startups within the first half of this 12 months. The second half is shaping as much as be a bit slower, in the meantime, with fewer than 100 offers up to now.
For a extra expansive chronological view, beneath we charted startup M&A deal counts by half-year starting in 2021.
The tempo of M&A dealmaking peaked about 4 years in the past and fell afterward, in tandem with a broader dip in startup funding. However exercise has picked up over the previous couple of years with the rise in AI funding.
Startups that purchase lots of different startups
Just a few startups have confirmed significantly acquisitive.
The standout on this class might be OpenAI, which has acquired eight startups this 12 months, most of them seed- or early-stage firms. So far, the generative AI big has purchased not less than 19 firms, per Crunchbase knowledge.
Anthropic has additionally been a busy purchaser. It’s snapped up not less than 5 startups up to now this 12 months, together with the $400 million buy of AI biotech startup Coefficient Bio.
Within the fintech area, in the meantime, MoonPay has been on an M&A spree. The crypto transactions platform acquired 5 funded startups centered on cryptocurrency or blockchain between April and July.
Others with a number of funded startup M&A offers this 12 months embrace AI infrastructure unicorn Databricks, safety supplier Cyera, and the authorized tech startups Harvey and Legora.
No massive slowdown in sight
Whereas prediction is usually a idiot’s sport, there’s not a lot within the speedy set of indicators pointing to a slowdown in startups’ urge for food for acquisition. Amid fierce competitors for an edge within the AI race, well-funded startups generally discover it’s merely sooner to purchase one other firm than attempt to construct out sure applied sciences themselves.
Identical goes for expertise. Via acquihire transactions, startups can carry on board not simply top-tier people however skilled groups with a observe file of constructing spectacular issues collectively.
Focus of capital is one other issue driving M&A offers. Whereas general startup funding has risen this 12 months, it’s more and more unfold throughout a smaller pool of firms. That leaves one giant cohort of startups struggling to lift funding whereas one other has plentiful capital for acquisitions.
Go-to-market bills additionally issue into M&A concerns. A startup would possibly produce a compelling providing in-house however discover it pricey to carry it to market. The method could look extra possible underneath the wing of a bigger, extra mature startup.
Backside line: Given the excessive variety of prepared sellers and well-funded consumers, count on the startup-to-startup acquisitions to proceed.
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Illustration: Dom Guzman
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