Thursday, 1 February 2024

Are regulators scuttling the startup M&A market?

Plus, 5 interesting startups that got money in January

February 1, 2024

Hi, Agen. Lately, it seems like a lot of large technology acquisitions have fallen apart following pushback from European and U.K. antitrust regulators — well over $70 billion worth of planned acquisitions by American technology companies, by our count. Could that be a contributing factor in the eight-year low in M&A deals involving venture-backed startups we saw in 2023? Plus, from a startup cleaning up space to one developing humanoid robots to help around the house, here are five under-the-radar companies that got investor cash in January.

🛑 Regulatory pushback scuttled over $70B in M&A deals

Amazon pulling the plug on its planned purchase of iRobot is just the latest deal to fall apart in a surge of antitrust scrutiny. Many large tech acquisitions have been pulled following pushback from regulators, and the value of those deals keeps mounting, our analysis shows.

Related Crunchbase Pro list: M&A Involving VC-Backed Startups In 2023

🤔 5 interesting startups that got money in January

AI is still big and doing intriguing things, making humanoid robots to help around the house more viable, and driving investor interest in a startup that applies artificial intelligence to its parent-led autism therapy. Let’s look at five interesting funding deals you may have missed last month.

🚌 School bus startup Zum zips to $1.3B valuation

Zum, a startup that tries to help school districts increase efficiencies and reduce the costs of managing bus fleets through its proprietary, AI-powered platform, has raised a fresh $140 million at a significantly higher valuation — notable when you consider many startups have seen their valuations slashed since 2021.

🛒 When will big-spender PE firms resume buying software startups?

Over the past five years, the most-active PE buyers have collectively spent more than $36 billion to buy dozens of private companies in the space, Crunchbase data shows. But M&A deals for private companies peaked in 2020 and 2021, and slowed considerably in recent quarters, with a similar trend playing out for PE purchases of both public and private software companies.

Related Crunchbase Pro list: Software Startup Acquisitions By The Most-Active Private Equity Buyers

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