Q4 2025 was the hottest quarter for startup M&A ever.
At least among US startups that use Carta (over 55,000 companies at this point).
𝟱 𝘁𝗵𝗶𝗻𝗴𝘀 𝘁𝗼 𝗸𝗻𝗼𝘄
232 acquired companies last quarter was 60% higher than the total in Q4 2023 - a lot can change in 24 months.
Nearly half of the acquisitions involve pre-seed & seed companies. These are likely acquihires and talent grabs with a dash of product thrown in. But as we can see from the AI/ML engineering races, high-end talent matters more than ever.
44 deals involved companies that had raised at least $50 million, which is a new record by a lot.
Just because a deal happened DOES NOT mean that founders and employees made money. The final sale price may not have cleared the pref stack so the common could have walked away with nothing (we're working on a better way to figure this out deal by deal). Not every (and perhaps not most) acquisitions are great deals.
Over 40% of the acquired companies were AI startups. This tells me two things - a) bigger companies are buying smaller, AI-native companies to in-house AI expertise and b) getting a deal done for a company born before AI gets harder with every passing day.
May your deals always clear the pref stack 🙏
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
