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PitchBook Analyst Note: Pursuit of Growth Turns Outward

2Q 2019

PitchBook Analyst Note: Pursuit of Growth Turns Outward

June 17, 2019

PitchBook Analyst Note: Pursuit of Growth Turns Outward
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The buy-and-build approach is atypical of the venture capital playbook, but acquisitions by US VC-backed companies have seen a spike as of late as some startups opt to fund growth through external investments rather than purely organic means. This analyst note examines how dealmaking by VC-backed companies has developed over time, why startups would feel compelled to engage in deals and their effect on valuations and what buy-side investment activity by VC-backed companies could look like going forward.