| Hi, Agen. If you’re a startup founder, by far your best chances of an exit, statistically speaking, still lie in an M&A deal, not an IPO. And the buyer probably won’t be Apple, Google or Meta — for venture-backed startups, it’s historically rather common to wind up selling to another startup. Lately, however, the pace of these startups-buying-startups deals has been slowing down, too, our data shows. Plus, three options to consider if your startup’s runway is shorter than your path to profitability, and a16z could have as much as $7 billion in fresh cash to invest in a variety of startups in sectors ranging from defense tech to gaming to AI apps. In all of 2023, just over 650 funded startups globally were acquired by other funded startups — the lowest total in three years — and 2024 is off to a similarly slow start, Crunchbase data shows. Related Crunchbase Pro list: Startups Buying Startups, Global Like many startup entrepreneurs, you might currently find yourself at a difficult crossroads. Your company has raised decent funding, identified product market fit, and has solid and growing revenue. But the clock is ticking: Projections point to profitability in 12 months, but your runway is drying up in nine. So, what choices do you have? Startup adviser Itay Sagie walks you through three options: Raising new capital, a sale, or selling a majority stake. Globally, more than $2 billion was invested in seed-stage companies last month. Close to $10 billion was invested in early-stage companies. And venture investors spent $9.3 billion at late-stage, including technology growth companies, our data shows. Let’s dive in. Andreessen Horowitz — known for early bets on companies such as Facebook and Airbnb and the most active venture investor worldwide last year — is reportedly closing in on as much as $7 billion in new funds to invest in AI infrastructure, gaming, defense tech, manufacturing and other startups. Related Crunchbase Pro list: Andreessen Horowitz’s 2023 Investments Plenty of interesting companies raised cash in February — and many had nothing to do with AI. Here’s a look at five of the most intriguing, from a startup promising better sleep for insomniacs to another that says it’s developed a new chemical-free approach to battling the herbicide-resistant weeds that cost farmers worldwide billions of dollars annually. |
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