Mr. Weir is a partner at Invenio Growth, an advisory firm focused on helping clients envision and execute digital transformations. Prior to Invenio, Mr. Weir was a consultant in McKinsey’s global payment practice, and a product manager at Klarna and Fiserv.
09/02/2021 / 10:15 - 10:25
For a long time, large corporations have enjoyed a near-monopoly on the superweapon of M&A. They used their access to capital and practiced M&A functions to eliminate competitors, enter new geographies and shorten development times. Today, the rise of venture capital & founders with M&A experience are helping startups strike back. Since 2017, startups have been growing their share of the global M&A market at 15% CAGR. Last year, startup investors participated in 3.3% of global M&A transactions–up from 2.2% in 2017. Our research shows that this trend will only accelerate in the near future.
While M&A and startup investing are prone to optimism that over-promises, our research shows that acquisitive startups have higher step-up valuations than their non-acquisitive peers.