附近上门

As anyone following tech stocks recently has observed, there鈥檚 been a lot of downward momentum.

Even so, public tech companies have carried out some big startup M&A deals lately. Just yesterday, e-commerce software company said it鈥檚 buying logistics and fulfillment unicorn for $2.1 billion, marking its largest acquisition yet. And just last month, chipmaker announced another huge purchase, buying venture-backed for $1.9 billion.

Meanwhile, startups continue to snap up other startups at an unusually brisk pace. There were 124 acquisitions of VC-backed companies based in the United States by other VC-backed companies in the first quarter of this year, per 附近上门 data, the largest first-quarter total in a decade.聽

But with the IPO market in a deep-freeze and tech valuations seeing their sharpest downward revisions in years, can we expect M&A to slow down?

Likely not, said Alan Jones, a managing partner and TMT deals group leader. He said it鈥檚 probable we鈥檒l see a 鈥渂uyer鈥檚 market鈥� emerge in coming months as deep-pocketed acquirers pick up targets at prices far below where they were a few months ago.聽

It may take some time to adjust. Startups tend to lag public markets in resetting of valuations, which typically happens when a new round closes. Venture backers will also obviously not be enthused about M&A deals at valuations below where they invested.

The Shopify acquisition of Deliverr, however, indicates that late-stage investors may be willing to accept a solid deal and forego a big return. Deliverr鈥檚 last private funding round, a November Series E led by , reportedly set a $2 billion post-money valuation鈥攋ust 5 percent below the purchase price. That鈥檚 not a terrible outcome for Tiger, but certainly not something to brag about.

Going forward, startups looking to get acquired will quickly have to face a cut-price environment.聽

Given that so many public tech companies have seen shares fall, they鈥檒l seek out similar reductions in their acquisition targets, Jones said, observing:聽聽

鈥淚f you鈥檙e thinking about doing a deal and your multiples are down 40 percent, the good news is the companies you鈥檙e looking at are being valued according to the same multiples.鈥�

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