Half of Startup M and A Involves Pre-Seed or Seed Companies

Half of Startup M and A Involves Pre-Seed or Seed Companies

Author

Peter Walker

|

Read time: 

1 minute

Published date: 

January 9, 2025

Despite billion-dollar deal headlines, 50% of startup acquisitions involve pre-seed or seed companies—acquihires and tuck-ins that can be genuine wins for...

LinkedIn: Half of Startup M and A Involves Pre-Seed or Seed Companies

We get headlines about the billion-dollar deals, but half of startup M&A involves pre-seed or seed companies.

These acquisitions have a lot of names. Acquihires, tuck-ins, bolt-ons, feature adds - all slightly dour. But these smaller M&A deals can actually be a great success for the founder and tiny teams that join the bigger new mothership.

Of course this data doesn't really tell us much about the actual wealth created in these M&A deals. It's heartening to see that M&A was up 13% year over year, but given the overvaluations that were rampant in VC world probably many of these didn't change hands at the sticker price.

Still - some momentum to build on in 2025. Some more M&A, secondary transactions, throw in a few good IPOs...could be a special year!

#startups #mergers #acquisitions #founders #VC

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Peter Walker
Author: Peter Walker
Peter Walker runs the Insights team at Carta, focused on discovering key data and narratives across the private capital ecosystem. In a former life, he was a marketing executive for a media analytics startup and led the data visualization team at the Covid Tracking Project.

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