After a promising start to the year on the M&A front, things have slowed down significantly in the third quarter. While it was generally agreed that mega-mergers were set to be few and far between, Q3 delivered only four deals over $1bn and hopes for a bumper year in M&A are now firmly dashed.
Following this trend is venture financing, which saw quarter-on-quarter drops in both number of rounds and total values. Just under $4bn was raised in Q3, as investors ride out public market troubles. While the IPO window seems to be opened just a crack, VCs are having to support portfolio companies for longer, and less funding is available for the many biotechs who are running short of cash.
What of that IPO window? Well, it does seem to be opening, but many of those companies who have made the leap have seen their valuations fall. Q3 did see the first $1bn quarter since 2021, but it’s worth noting that all these took place in the US.
Overall, it is a mixed bag of hope and mild disappointment.