Downturn in VCs, Upturn in M&A

While stagnant VCs have been stalled on investments for the last 18 months, M&A conversations have been ramping up.

Small to medium-sized US tech companies are shopping for bargains in Europe. There’s some great IP and without funding, founders are more likely to move straight to exit.

A report from PWC suggests this upward trend is likely to sustain.

In the last two weeks, I’ve met four organisations scouting for tech with reports of others coming over. They know the multiples and cash-equity ratios they want to work with. They’re either looking for European client coverage, IP or talent.

And they’re all trying to rapidly increase their own valuation for much bigger exits in the US over the next two years.

Keep an eye on it. I think we’re going to see some interesting deals in the next six months.