Contrary to common assumptions, many startups that have not raised venture capital for over four years are securing sizable acquisitions, underscoring a shift in the market for boom-era companies.
- Startups from 2021 boom selling after years without fresh funding
- Acquisition valuations often much lower than previous peaks
- Extended runways allowed growth despite challenging funding environment
What happened
Several high-profile startups that raised large funding rounds during the 2021 boom have recently been acquired despite not raising new venture capital for over four years. A notable example is Uber’s acquisition of ezCater for $2.3 billion in cash. This deal closed nearly five years after the Boston-based catering platform last raised funds and reflects a meaningful but reduced valuation compared to prior peaks.
Other boom-era companies like Airtable, Headspace, and Miro also changed hands in recent months at valuations significantly below their previous highs. For instance, Miro sold for approximately $1.36 billion compared to its $17.5 billion valuation at the end of 2021, and Airtable was acquired at roughly one-tenth of its $11 billion peak valuation. These transactions underscore a trend of mature startups exiting with moderate multiples rather than peak valuations.
Why it matters
The recent acquisitions highlight how startups that paused or delayed fundraising amid the post-2021 funding market recalibration can still find exit opportunities. Many of these companies extended their operational runways using large pre-2022 funding rounds, allowing continued growth and survival despite less favorable market conditions for new capital.
Although these deals often yield valuations below previous peaks, they demonstrate a realistic market adjustment instead of outright failure. For investors and founders, this shows that sustained business growth without frequent rounds can lead to significant, if moderated, liquidity events rather than forcing down rounds or shutdowns.
What to watch next
Moving forward, it will be important to monitor how remaining boom-era startups that have not raised funding recently navigate potential acquisition or fundraising scenarios amid fluctuating market conditions. The appetite of acquirers for mature startups with stable growth but no recent external financing will shape future deal flow.
Additionally, the market’s response to new technology trends, including AI, and their impact on valuations and acquisition multiples for similarly positioned startups could influence whether later exits improve or continue at discounted levels. Investors and startups should adjust expectations around growth timelines and exit valuations accordingly.