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M&A between startups has been activated

Bytomasian

Aug 28, 2022

Recently, M&A between startups has been activated, and M&A market trends are changing. While startups with only one of technology and capital are trying to expand their business through M&A, more and more companies are acquiring “real companies” at a time when the money supply is drying up.


According to the startup database platform “Forest of Innovation” on the 27th, a total of 43 M&As related to startups between April and July this year, an increase of nearly 60% compared to the same period last year. Until last year, as a large amount of money was released to the investment market, startups were choosing the investment they wanted to increase corporate value, but recently, investment sentiment has subsided due to concerns over an economic slowdown following an interest rate hike.


What stands out is M&A between startups. Ahn Hee-chul, a lawyer in charge of D-Lite startups, said, “About 100 mergers and acquisitions were made in the first half of this year, and more than 40 of them were acquired by startups.” He added, “In the case of startups acquiring startups, it is not just to absorb technology or manpower, but it is a choice for longer-term IPO and M&A strategies.” He also explained, “If we have used a strategy to grow and exit companies by attracting large-scale investments, recently, more and more companies are pushing for M&A through stock exchange.”


An industry official said, “Rather than starting from zero base as a way for startups to enter new markets, we are moving to scale up by joining hands with startups that have previously implemented well.”

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