VC-Backed Companies Get Stingy
November 2, 2012
After notching a stellar number of acquisitions in 2011 (a whopping 164), VC-backed companies are slowing down their purchases of other companies. At this point in time last year, venture-funded companies dished out serious dough to expand their offerings, completing 150 acquisitions in the U.S. and Canada between Jan. 1 and Nov. 1 of 2011. They've only made 85 such purchases since the beginning of 2012 to date—just over half the deal activity seen at this time last year, according to the PitchBook Platform. This swift downward trend may have something to do with the lower number of late stage rounds this year, a slump that was particularly noticeable last quarter, and the overall decrease in venture capital invested since 1Q 2011.
