Don't look now - but startup M&A is heating up.
In the US, total acquired startups hit 163 in Q3, up 24% from Q3 2023 and the highest figure since mid-2022.
(This is just startups that use Carta as their cap table platform, so the absolute figure is likely above that - although this is a pool of 45,000+ startups at this point).
𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴 𝗧𝗶𝗱𝗯𝗶𝘁𝘀
M&A activity has risen across Carta companies for 4 straight quarters, indicating a slowly thawing deal environment.
Startups that raised less than $25 million before getting purchased make up about 75% of all transactions. The over $25M category does seem to be taking a little share however in recent quarters.
No data from us on transaction quality, unfortunately - I'd love to be able to tell you all about which M&A deals really made money for everyone on the cap table and which were simple acquihires, etc. Hopefully more to say on that point in the future.
Of course 163 deals from an aggregate pool of 45,000 startups is a drop in the bucket. Anecdotally, more startup founders are interested in a strategic tie-up than were considering it in say 2021. But the buyer appetite still lags behind the potential supply across many industries.
All of this points to a startup market where liquidity is slightly easier to come by in 2025. That's some minor relief for VCs who have been looking to show returns to LPs, but honestly nothing in the M&A sphere can take the place of a robust IPO segment.
We need IPOs back! Tell your favorite late-stage founders (or write an email to the Fed saying thanks for that 50 bps cut) 😁
#startups #M&A #acquisitions #founders #venturecapital
Fresh data out weekly in our Data Minute newsletter --> Subscribe at the link in graphic
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.
