Offers covering startups supported by VC increased by 26% year year in the first quarter, but remained quite stable since the last quarter of 2024, at the same time as much as counting on significant growth.
Crunchbase data It shows that in the first quarter of 2025. In the first quarter of 2025, last year there have been 550 M&A offers covering startups supported by the undertaking. This number is ahead of 435 contracts terminated in the first quarter, but in fact a small tick below 563 contracts in the fourth quarter.
Numbers for creating transactions including American startups supported by VC were in line with a similar pattern, with 300 offers announced in Q1 this year -40% of the jump compared to last year, but essentially on a par with 295 accomplished in Q4.
Attention
While each numbers remained quite last year, even in the fourth quarter, perhaps the biggest difference was the catchy nature of some of the largest contracts.
In the first quarter the biggest acquisition of a private, supported undertaking in history was recorded Google parent Alphabet He announced that he would buy a safety unicorn in the cloud Wizard for planned $ 32 billion. Last summer, Alphabet was close to taking up visas for around $ 23 billion, first Reported IN The Wall Street Journal.
Two days after the message about taking up Softbank announced Acquires a design company Chip Ampere computing in a money transaction price $ 6.2 billion.
These two offers were the largest in the world and the United States – and evidently it declares an attack on which many in the industry in 2025 count.
Optimism is reduced
The optimism regarding the merger and acquisitions this year after the change of regime in White Housewith many other in the industry, he hopes that Federal Trade Commission AND US Department of Justice under Asset Administration would scale back regulatory obstacles.
But the fears of the trade war, resulting from this market volatility, and even concerns about the risk of recession, seem to make it difficult for this optimism.
“The pipeline suggests that it could be a big year,” he said Ryan LundCooperation of American technology and global software at Investment Bank Heuli Helop. “However, I expect modest growth. This is more like 2018–19.”
Lund said that he was expecting “growth” in the field of mergers and acquisitions, but uncertainty on the market will probably stop the huge growth.
He added that they last more during the transaction. Where they might once take three to six months, this schedule extends to six to eight.
In the case of many VC, DPI-distributed for paid capital or capital paid after the outputs by the portfolio firms of those funds-it is the highest problem, but they imagine that the current market is unlikely to provide a lot through M&A.
“Macroeconomic conditions have a more direct impact on the activities of mergers and acquisitions … Especially when it comes to large, strategic buyers,” he said Writer offerElder partner and head of the Israeli office for Venture Yl ventures. “In the current environment – marked market instability and changing valuations – these players are becoming more cautious and less prone to realizing the acquisitions.”
However, the year is still young, and market dynamics can change. The most significant query is: when?
“I am optimistic about the increase in the flow of mergers and acquisitions,” he said Umesh Padval – Managing Director in Thomvest Ventures which specializes in cyber infrastructure, clouds and AI. “However, we’ll probably not see a significant growth until the market variability has resolved.
“If we would like to predict the future, no one has a crystal ball, so for now patience is crucial because the market is located,” he added.