For a startup, selling to another startup isn’t the classic exit strategy. However, data shows it is a common path, especially as of late with the rise of deep-pocketed, ultra-high-valuation unicorns.
So far this year, more than 500 seed- or venture-backed private companies across the globe have sold to other private, venture-backed companies, per Crunchbase data. The most prolific acquirers include many of the most famous and valuable unicorns, including OpenAI, Databricks and Anthropic.
Overall, the pace of dealmaking in 2026 looks relatively flat 1Reported deal counts are down slightly this year from the comparable period, but are likely to even out more over time as some acquisitions, particularly smaller deals, are added to the dataset weeks or months after they close.2 compared to last year. That’s not entirely surprising given that overall market conditions haven’t changed dramatically. The number of tech startup IPOs remains below normal. Hot venture-backed AI companies are still sustaining unheard-of valuations. And the rise of megarounds means favored startup acquirers are flush with cash.
Startups buying startups in recent years
In total, at least 440 funded startups sold to other startups in the first half of this year. The second half is shaping up to be a bit slower, meanwhile, with fewer than 100 deals so far.
For a more expansive chronological view, below we charted startup M&A deal counts by half-year beginning in 2021.
The pace of M&A dealmaking peaked about four years ago and fell afterward, in tandem with a broader dip in startup investment. But activity has picked up over the past couple of years with the rise in AI investment.
Startups that buy a lot of other startups
A few startups have proven particularly acquisitive.
The standout in this category is probably OpenAI, which has acquired eight startups this year, most of them seed- or early-stage companies. To date, the generative AI giant has bought at least 19 companies, per Crunchbase data.
Anthropic has also been a busy buyer. It’s snapped up at least five startups so far this year, including the $400 million purchase of AI biotech startup Coefficient Bio.
In the fintech space, meanwhile, MoonPay has been on an M&A spree. The crypto transactions platform acquired five funded startups focused on cryptocurrency or blockchain between April and July.
Others with multiple funded startup M&A deals this year include AI infrastructure unicorn Databricks, security provider Cyera, and the legal tech startups Harvey and Legora.
No big slowdown in sight
While prediction can be a fool’s game, there’s not much in the immediate set of indicators pointing to a slowdown in startups’ appetite for acquisition. Amid fierce competition for an edge in the AI race, well-funded startups commonly find it’s simply faster to buy another company than try to build out certain technologies themselves.
Same goes for talent. Through acquihire transactions, startups can bring on board not just top-tier individuals but experienced teams with a track record of building impressive things together.
Concentration of capital is another factor driving M&A deals. While overall startup funding has risen this year, it’s increasingly spread across a smaller pool of companies. That leaves one large cohort of startups struggling to raise funding while another has plentiful capital for acquisitions.
Go-to-market expenses also factor into M&A considerations. A startup might produce a compelling offering in-house but find it costly to bring it to market. The process may look more feasible under the wing of a larger, more mature startup.
Bottom line: Given the high number of willing sellers and well-funded buyers, expect the startup-to-startup acquisitions to continue.
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Illustration: Dom Guzman
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