In 2023, the landscape of venture-backed exits in the U.S. has significantly changed, marking a sharp increase in billion-dollar transactions. According to Crunchbase data, a total of 11 venture-backed companies within the U.S. have either gone public or been acquired for valuations exceeding $1 billion this year alone. This figure more than doubles the total from the same timeframe in 2022.

Record Acquisitions Highlight the Year

Among the noteworthy transactions is Google’s anticipated acquisition of cybersecurity firm Wiz for a staggering $32 billion, which, if completed, would become the largest acquisition of a U.S. startup backed by venture capital to date.

March Sees a Surge in Activity

March is proving to be a particularly active month for billion-dollar exits, showcasing a resurgence in the tech sector. Thus far, eight exits exceeding the billion-dollar mark have been recorded, collectively valued at over $60 billion. This includes significant acquisitions such as SoftBank’s $6.2 billion purchase of Ampere Computing, a Silicon Valley-based AI chip design company.

Annual Statistics of Exits

Over the past four quarters, 37 U.S. startups have achieved billion-dollar exit valuations through either mergers and acquisitions (M&A) or initial public offerings (IPOs). This is nearly double the exits witnessed in the previous year.

It is noteworthy that, of the billion-dollar transactions this year, all but one have been from acquisitions. The sole IPO was Metsera, a company focused on hormone therapies for conditions like obesity, launching with an estimated valuation of $3 billion in January.

Valuation Trends in Acquisitions

In a striking trend, several recent acquisitions have occurred at valuations lower than their historical highs. For instance, Munich Re’s acquisition of Next Insurance closed at $2.6 billion, despite the company being valued at $4 billion just two years earlier. Similarly, Niantic’s sale of core gaming assets to Scopely fetched $3.5 billion, whereas it previously commanded a $9 billion valuation during funding rounds in 2021.

Upcoming IPOs on the Horizon

Looking forward, the IPO landscape appears promising, with several firms preparing for public offerings. CoreWeave, a provider of cloud infrastructure for AI, recently filed for a Nasdaq IPO with a potential valuation of $32 billion. Additionally, Hinge Health, valued at $6.2 billion in late 2021, is also set to enter the market with its IPO this month.

The Future of Billion-Dollar Exits

The current environment for startup exits is lively and dynamic, a marked contrast to previous periods noted for their stagnation. While the trajectory of this activity remains uncertain, the early months of 2023 suggest a thrilling increase in financial transactions within the tech industry.