| Hi, Agen. Startup buyers are apparently the ultimate bargain shoppers. M&A involving venture-backed startups hit an eight-year low last year, Crunchbase data shows, with buyers likely waiting to see just how far startup valuations will drop. Plus, let’s look at last week’s layoffs and 10 largest U.S. funding deals. The strategic and private equity buyers who typically scoop up startups held tightly to their wallets last year, worsening already tough times in which funding is scarce and IPOs scarcer. Only 1,738 venture-backed startups were acquired globally — the lowest amount since 2015, when 1,687 startups were bought — per Crunchbase data. We talk with investors about what this year holds for startup M&A and whether we’ll see dealmaking perk up. Related Crunchbase Pro lists:
• M&A Involving VC-Backed Startups In 2023
• M&A Involving U.S.-Based, VC-Backed Startups For a change, you had to go all the way to No. 4 on our list of 10 largest U.S. startup funding deals last week to find an AI company. Energy, loyalty rewards and fintech startups all scored bigger rounds, with the No. 1 deal coming in at a whopping $500 million. See also: The Crunchbase Megadeals Board More than 5,800 U.S. tech workers lost their jobs last week, many at Big Tech companies including Microsoft, Google and Salesforce, and others who didn’t survive the third known round of cuts in a year at logistics unicorn Flexport. xAI, Elon Musk’s OpenAI competitor, is reportedly in talks to raise as much as $6 billion from investors — or 6x as much as previous reports said the entrepreneur’s AI startup was seeking. Investors say that while seed funding has held up better than other startup investment stages, these very young startups will see lower valuations and must now clear a much higher bar to get backing. | 
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