February: Corporate-backed startups continue to attract high M&A interest, despite decreasing valuations
February saw a flurry of activity in the corporate-backed startup space, with 37 companies being acquired across various sectors such as semiconductors, skincare, pharma, and robots. While the number of exits in February was lower than in January and December, the market still showed signs of strength compared to the past two years. The total capital raised in February was almost double that of the previous year, indicating a 76% increase in exits, although it fell towards the lower end of monthly totals seen over the last year.
Acquisitions dominated the exit landscape in February, with 37 companies being bought out compared to only four IPOs. The top acquisitions included Anthos Therapeutics, a pharmaceutical company focused on cardiovascular disease, which was acquired by Novartis for up to $2.15 billion. Other notable acquisitions were Mantl, a fintech company acquired by Alkami for $400 million, and Minimalist, an Indian skincare brand acquired by Unilever for $350 million.
In the semiconductor sector, Kinara, a US startup specializing in AI processors for machine learning, was acquired by NXP Semiconductors for $307 million. This acquisition highlighted the growing importance of edge AI applications in various industries, from medical equipment to security cameras. Another notable acquisition was Drata, a US compliance automation company, which acquired SafeBase for $250 million, showcasing the importance of cybersecurity tools in today’s digital landscape.
Turning to the IPO market, healthcare startups took the spotlight in February, with three of the four IPOs recorded belonging to this sector. Maze Therapeutics, a US pharmaceutical startup focusing on precision medicines, raised $140 million, while Aardvark Therapeutics, another US healthcare startup targeting metabolic diseases, went public raising an undisclosed amount. BioVersys, a Swiss company developing antibiotics to combat drug-resistant infections, raised $99.1 million. In the robotics sector, Chinese company RoboSense, known for its components used in the automotive industry, raised $128 million in its IPO.
Overall, February was a busy month for corporate-backed startups, with a strong focus on acquisitions across a variety of sectors. The market showed resilience and growth compared to previous years, with notable exits in the pharmaceutical, fintech, skincare, semiconductor, compliance automation, healthcare, and robotics industries. The diverse range of companies being acquired or going public reflects the dynamism and innovation present in the corporate-backed startup ecosystem.
