The landscape for startup acquisitions has significantly declined from its peak in 2021, with small and mid-sized purchases struggling to gain momentum. In 2022, the total value of U.S. startup acquisitions under the threshold of $300 million reached approximately $8.7 billion, according to data from Crunchbase. This figure, while notable, indicates a continuing trend of subdued activity in this segment of the market.
The total deal value for acquisitions ranging from $100 million to $300 million remains below levels typically achieved nearly a decade ago. To illustrate this, the recent acquisition of Wiz by Google for $32 billion surpasses the combined value of all deals in the sub-$300 million category, underscoring the disparity in acquisition sizes.
Small Acquisitions Show Signs of Recovery
Despite the overall decline, there has been a slight rebound in startup purchases, particularly in the sub-$300 million range. After hitting a low point in previous years, activity in this segment has picked up, with the current year starting off with increased energy. However, the volume of smaller disclosed-price acquisitions—defined as those under $100 million—remains significantly below peak figures.
These smaller deals often yield mixed returns for investors. Some companies that secured modest seed funding have managed to sell for tens of millions, creating profitable exits. Conversely, there are instances where startups have been sold for considerably less than their initial venture investments. A notable example is Rad Power Bikes, which filed for bankruptcy before being acquired this month.
Lack of Dominant Buyers in the Market
The absence of a dominant “power acquirer” for small and mid-sized startup purchases is evident. Out of 181 acquisitions in the sub-$300 million category reported since 2024, no single buyer has completed more than two such deals, as per Crunchbase data. While some companies, including Cisco, Cloudflare, and CoreWeave, have engaged in multiple startup acquisitions, the lack of disclosed pricing makes it challenging to assess the outcomes of these transactions for founders and investors.
Price transparency is a critical factor in evaluating the health of the acquisition market. Many of the more active buyers have the capacity to offer competitive prices, yet their willingness to do so varies. It is important to note that the figures discussed here only reflect disclosed-price purchases, as the majority of startup acquisitions do not publicly share their sale prices.
As the year progresses, analysts will continue to monitor the dynamics of startup acquisitions, particularly in the $100 million to $300 million range, to determine if the recent uptick in activity can lead to more sustainable growth in this sector.