Global M&A Startup Deals See Strong Start to 2025
Global M&A startup activity rose 26% in the first quarter of 2025 compared to the same period last year. A total of 550 mergers and acquisitions involving venture-backed startups were recorded, up from 435 in Q1 2024. However, the number was slightly below the 563 deals completed in the last quarter of 2024.

In the U.S., the trend was similar. There were 300 VC-backed startup deals in Q1, a 40% increase from the previous year, but nearly the same as the 295 deals from Q4 2024.

High-Profile Deals Dominate Headlines
Despite overall volume staying level with late 2024, the scale and visibility of certain deals stood out.

The biggest was Google parent Alphabet’s $32 billion planned acquisition of cloud security firm Wiz, making it the largest buyout of a private, venture-backed company to date. This followed a previous attempt last year to acquire Wiz for $23 billion.

Soon after, SoftBank announced it would acquire Ampere Computing, a chip design firm, in a $6.2 billion cash deal. These high-value transactions sparked hope for a broader wave of global M&A startup activity in 2025.

Market Conditions Slow Momentum
There was strong early optimism that a shift in the U.S. administration might lead to fewer regulatory barriers, fueling more M&A activity. However, ongoing concerns about trade tensions, economic instability, and recession risks have dampened those expectations.

Ryan Lund, co-head of U.S. technology and global software at Houlihan Lokey, said the market feels more like 2018–2019, with only modest growth expected. “Deals are still happening,” he noted, “but they’re taking longer—often six to eight months instead of three to six.”

VCs Face Exit Pressure, But M&A May Not Deliver Yet
For venture capital firms, returning capital to investors remains a priority. Still, the current global M&A startup environment isn’t making it easy.

Ofer Schreiber, senior partner at YL Ventures, said larger, publicly traded companies are cautious due to market instability and shifting valuations. This hesitancy has slowed down acquisition activity, especially at the high end of the market.

Looking Ahead: Waiting for Stability
Despite early strong signals, most investors agree that the market needs more stability before M&A deal flow can accelerate.

“I’m hopeful we’ll see an increase in M&A and IPO activity,” said Umesh Padval, managing director at Thomvest Ventures. “But it will likely take a more stable market to see real growth.”

The outlook for global M&A startup activity remains cautiously optimistic — with patience being the common strategy as companies wait for better conditions.