The number of tech unicorns has grown very quickly. Eight years ago, there were a dozen unicorns - today, it's 750 unicorns as reported by the Economist! These unicorns are now worth a combined USD 2.4 trillion. The main reason for soaring valuations is more competition among "non-traditional" investors. Just in the past quarter, these "non-traditional" investors in the US took part in 1,800 deals which raised USD 57B in aggregate.
We believe this winning streak with Unicorns will have a similar ending to the Dot Com era during 1999-2001 when rich valuations either fizzled after IPO or never got that far.
Now is the time to build a long term sustainable M&A roadmap, to build enterprise value and to de-risk against lofty valuations built through an unicorn model. Now is the time to prepare for tech market consolidations. Are you ready to buy?
Covid-19 has reshaped the market for literally every industry. As companies adapt to the pandemic, they face challenges across their respective ecosystems.
The pandemic has created acquisition opportunities with a laser focus on innovation and disruptive technology.
With funds now having over $1.7 trillion of dry powder for 2021 and beyond, what is your valuation growth story?
The unicorn space has become very crowded across nearly every technology segment. You need an M&A roadmap along with a proven M&A investment banker.
What type of capital fuel does your organization need for the next three to five years to dominate your industry?
Which targets should you acquire for to strengthen your technology roadmap? Competitive advantage? Which targets gives you the largest growth of your enterprise value?
M&A in the sector has shifted in focus over the past decade from scale to scope, with acquirers looking to acquire innovative technologies and complimentary product lines. Capital is available for tech companies to make acquisitions and help drive valuations to soar at a level not possible...organically.
Every technology industry segment is ready for consolidation. The maturation cycle for AI, Machine Learning, FoodTech, Insurtech, Agtech, CloudTech, Health & Wellness, FinTech, Cybersecurity, IoT, Mobility, Retail Tech and Supply Chain Tech companies is ready for consolidation.
The principals of Transaction.Capital are licensed investment banking agents, offering securities through M&A Securities Group, Inc., an unaffiliated broker-dealer. Member
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