Despite the slowdown, three deals involving venture-backed companies exceeded $3 billion globally in 2023. Looking ahead, experts predict that dealmaking will pick up in the next three to nine months as valuations continue to drop. They also expect sectors like cybersecurity, crypto, semiconductors, and AI to drive more deal activity in 2024.
Key takeaways:
- Dealmaking involving venture-backed startups hit an eight-year low in 2023, with only 1,738 startups acquired globally, a 31% decline from 2022.
- In the U.S., dealmaking involving VC-backed companies hit a 10-year low with only 824 deals completed in 2023, a 30% drop from 2022.
- Three deals involving venture-backed companies topped $3 billion globally in 2023, including Savvy Games Group's acquisition of Scopely for $4.9 billion.
- Experts predict dealmaking may pick up in the next three to nine months as valuations continue to drop and companies are forced to find partners due to a slow venture funding market.