Acquisitions of venture capital-funded startups hit an eight-year low in 2023 as strategic buyers and private equity firms decided to hold off on spending, expecting startup valuations to decline further.
Only 1,738 venture-backed startups were acquired globally in 2023, the lowest number since 2015 and a 31% decline from 2022. In the U.S., the number of deals also fell to a ten-year low, with 824 deals in 2023, down 30% from the previous year.
Large deals were rare, but some significant deals still took place, including the $4.9 billion acquisition of Scopely by Savvy Games Group.
Expectations for 2024 vary, but many are hoping for a revival in deal activity, especially in the cybersecurity, cryptocurrency, semiconductor, and artificial intelligence sectors.
