Despite all the high-profile billion-dollar acquisitions, eg: ARM by SoftBank, KUKA by Midea and Uber China by Didi Chuxing, M&A are down 19% this year, according to both Forbes and CB Insights. Buyers are buying, but they are seeking cash-positive market-realistic targets. Values (both monetary and vanity) are taking a hit. What’s a startup to do?
According to CB Insights, startups can (1) get bought at a lower valuation and take the hit; (2) lower their cash burn rate and play the long game; or, (3), if they already have strong fundamentals and good growth, continue on.