Private equity has become a big player in the startup market. Here are the 10 biggest startup acquisitions PE firms have made in the last 3 years. (CHWY)
- Private equity firms have become major players in the startup market.
- Last year, 20% of all startups that had a successful exit — meaning they either went public or were acquired — were bought in a private equity-related deal.
- Startups still see lots more money from IPOs and corporate acquisitions than from private equity deals, but PE firms are spending increasing amounts.
- The top 10 biggest private equity purchases of startups are listed below.
- Click here for more BI Prime stories.
The vast majority of startups don't go public. They get acquired — assuming they don't go out of business first.
Traditionally, the acquirers of venture-backed startups have been other, independent companies in the same industry, whether they are established players or other startups. But more and more startups these days are being acquired by private equity firms.
Last year, about 20% of all startups that had a successful exit — meaning they were either acquired or went public — were purchased either directly by a private equity firm or by a company that was owned by one, according to PitchBook. That was up from just 5% in 2003.
Startup backers still see lots more money from the public markets and corporate buyers than they do from private equity firms. But the amounts that PE firms are spending on startups is steadily increasing and in some cases has gotten quite large.
Last year, such firms spent $6.3 billion buying up startups — up from $690 million seven years earlier. And three private equity buyouts over the three years topped $1 billion.
Here, according to PitchBook, are the 10 largest private equity purchases of startups over the last three years:
10. Stonepeak Infrastructure Partners — Cologix, $500 million
Startup: Cologix
Headquarters: Denver
Industry: IT Services — Data center provider
Number of venture rounds: 3
Venture equity capital raised: $43.9 million
Pre-acquisition debt raised: $375 million
Acquirer: Stonepeak Infrastructure Partners
Closing Date: March 21, 2017
Amount: $500 million
Sources: PitchBook, Cologix
9. Lithium Technologies (owned by Vista Equity partners) — Spredfast, $540 million
Startup: Spredfast
Headquarters: San Francisco
Industry: Digital marketing, customer relationship management
Number of venture rounds: 7
Venture equity capital raised: $140.3 million
Acquirer: Lithium Technologies
Private-equity backer: Vista Equity Partners
Name of successor startup: Khoros
Closing Date: October 2, 2018
Amount: $540 million
Sources: PitchBook, Khoros
8. Blackstone — Vungle, $750 million
Startup: Vungle
Headquarters: San Francisco
Industry: Mobile advertising
Number of venture rounds: 3
Venture equity capital raised: $27.4 million
Acquirer: Blackstone
Closing Date: September 30, 2019
Amount: $750 million
Sources: PitchBook, Vungle
7. Navicure (owned by Bain Capital) — ZirMed, $750 million
Startup: ZirMed
Headquarters: Louisville, Kentucky
Industry: Healthcare billing software
Number of venture rounds: 2
Venture equity capital raised: Not disclosed
Acquirer: Navicure
Private-equity backer: Bain Capital
Name of successor startup: Waystar
Closing Date: November 1, 2017
Amount: $750 million
Sources: PitchBook, Waystar
6. Insight Partners — Recorded Future, $780 million
Startup: Recorded Future
Headquarters: Somerville, Mass.
Industry: Cybersecurity
Number of venture rounds: 5
Venture equity capital raised: $59 million
Acquirer: Insight Partners
Closing Date: May 30, 2019
Amount: $780 million
Sources: PitchBook, Recorded Future
5. Vista Equity Partners— Wrike, $800 million
Startup: Wrike
Headquarters: San Jose, Calif.
Industry: Project management software
Number of venture rounds: 4
Venture equity capital raised: $36.6 million
Pre-acquisition debt raised: $10 million
Acquirer: Vista Equity Partners
Closing Date: November 29, 2018
Amount: $800 million
Sources: PitchBook, Wrike
4. Vista Equity Partners — Integral Ad Science, $835 million
Startup: Integral Ad Science
Headquarters: New York
Industry: Digital advertising analytics
Number of venture rounds: 6
Venture equity capital raised: $81.3 million
Pre-acquisition debt raised: $14.2 million
Acquirer: Vista Equity Partners
Closing Date: July 1, 2018
Amount: $835 million
Sources: PitchBook, Integral Ad Science
3. Vista Equity Partners — Acquia, $1 billion
Startup: Acquia
Headquarters: Boston
Industry: Content management software and hosting service
Number of venture rounds: 10
Venture equity capital raised: $194 million
Acquirer: Vista Equity Partners
Closing Date: November 1, 2019
Amount: $1 billion
Sources: PitchBook, Acquia
2. Thoma Bravo — ConnectWise, $1.5 billion
Startup: ConnectWise
Headquarters: Tampa, Fla.
Industry: IT services
Number of venture rounds: 0 (Bootstrapped)
Acquirer: Thoma Bravo
Closing Date: February 28, 2019
Amount: $1.5 billion
Sources: PitchBook, ConnectWise
1. PetSmart (owned by BC Partners) — Chewy, $3.4 billion
Startup: Chewy
Headquarters: Dania Beach, Fla.
Industry: Pet supply online retailer
Number of venture rounds: 3
Venture equity capital raised: $286 million
Acquirer: PetSmart
Private-equity backer: BC Partners
Closing Date: May 31, 2017
Amount: $3.4 billion
Sources: PitchBook, Chewy
Got a tip about the venture-capital industry or startups? Contact this reporter via email at twolverton@businessinsider.com, message him on Twitter @troywolv, or send him a secure message through Signal at 415.515.5594. You can also contact Business Insider securely via SecureDrop.
- Read more about the venture-capital industry and startups:
- Tech startups have a new 'exit' strategy. Why private equity firms have started plowing billions into acquiring startups.
- SoftBank's $100 billion Vision Fund had a no good, very bad year in 2019, but was still in the black overall. Here's why experts are still struggling to make sense of it.
- Here's why Casper's disappointing IPO could spell disaster for other unicorns
- This LA founder just raised $40 million for his startup. Here's his unconventional advice to founders on putting together a pitch deck.
from Tech Insider https://ift.tt/2uyYr5y
via IFTTT
Comments
Post a Comment