Antitrust scrutiny isn’t the sole reason for declining startup mergers, acquisitions
Initial public offerings get lots of press, but it’s the merger-and-acquisition market where most deals and much of the money are made in startup investing.
The vast majority of startups that stay in business get acquired, and the proceeds from those deals frequently represent the majority of the annual gains venture capitalists realize from their investments.
So it shouldn’t be much of a surprise that many in venture capital seem to be worried about the recent lack of acquisitions and have been looking for someone to blame.
Cordell Eminent Scholar Jay Ritter shares his insights with the San Francisco Examiner on the startup M&A decline.