Acquirers Are Snapping Up Boom-Era Startups That Haven’t Raised Funding In Years
A number of companies whose names might feature on a playlist of 2021 boom-era unicorns have sold to acquirers in recent months, including one-time highfliers like Airtable, Headspace and Miro. In many cases, companies are selling at valuations which, while not puny, are still far below their former peaks.
Recent acquisitions of startups that haven't raised new venture funding in years highlight that such companies often retain significant value, defying conventional wisdom. Uber's acquisition of ezCater, a catering platform, exemplifies this trend, paying $2.3 billion - 53% above ezCater's pre-money valuation from its last funding round in 2021.
Other notable deals include Airtable's sale to Bending Spoons for nearly $1.36 billion, and Headspace's acquisition by Sword Health for around $300 million. These transactions, while occurring at valuations far below peak pre-2021 levels, represent a market where older startups can still secure substantial deals, despite the cyclical peak in 2021 that led many to delay or reject new funding rounds.
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