Tech Startup M&A Report Confirms U.S. and Europe Driving Market

September.13.2018

The United States and Europe continued their dominance in the global tech startup market, according to the annual report “Tech Startup M&As 2018.” For the second year, Orrick has collaborated with Mind the Bridge and Crunchbase to release the report, which was unveiled at the European Innovation Day conference in Silicon Valley on September 11.

In preparing this M&A activity overview, Mind the Bridge and Crunchbase tracked nearly 22,000 startup exits globally since 2010 for a total of $1.2 trillion in value. The report shows 2018 as a flat year for M&A activity, with 4,200 exits and $220 billion in value, a comparable amount to 2017. The findings also note that the U.S. and Europe continue to control the majority of deals and capital, with 86% of transactions and 80% of capital spent involving those two regions, centered primarily on Silicon Valley. The report also found that the U.K. continued to hold its place as the “exit capital” in Europe, followed by France and Germany.

Orrick co-sponsored the report, led by Matteo Daste and Olivier Edwards, the co-chairs of Orrick’s Silicon Valley Europe Desk for the firm’s Technology Companies Group.

“Technology markets in Europe and the Bay Area have continued to grow in the past 12 months, signaling new business paths between the two regions emerging alongside traditional channels that are anchored around specific geographies,” noted Olivier.

Matteo added, “With nearly half of the world’s top acquiring companies based in Silicon Valley, we’ll likely see European companies and investors continuing to seek connections with the Bay Area, not only by establishing local hubs but also via partnerships and strategic alliances.”

Orrick’s collaboration with Mind the Bridge and Crunchbase reflects the firm’s continued emphasis on our global tech practice. During the past year, Orrick has announced key additions to our tech, European M&A and private equity practices in London, Germany and France. Orrick is a top 15 M&A firm globally (Mergermarket), with our team completing more than 320 deals in 2017, valued at $56 billion.