Prepping for Exit - a Founder’s Perspective on M&A - Issue #36

The chat startup has decided to remain independent as it resumes interest in a potential initial public offering.

“I’ve never seen it this frenzied” — “Deal flow and valuations are reaching new heights in technology startups, as a flood of cheap cash fuels efforts to find the industry’s next big winners, from software to social media,” The Wall Street Journal’s Heather Somerville reports (subscription).

North American Startup Funding Was On Fire In Q1—The first quarter of 2021 was one of those rare periods in startup funding and exiting in which it seemed everyone was bullish about everything. 

Hedge funds and other crossover investors are increasingly outbidding VCs when it comes to venture investing, offering startups higher valuations than traditional firms can reach.

1 big thing: 2021’s expected earnings blowout begins—First-quarter earnings so far have been very strong, outpacing even the rosy expectations from Wall Street and that’s a trend that’s expected to continue for all of 2021. S&P 500 companies are on pace for one of the best quarters of positive earnings surprises on record, according to FactSet.

SPACs May Cast Wider Net As Competition For Targets Increases—Electric vehicle and greentech companies have proven to be the sweethearts of the SPAC universe thus far when it comes to merger targets, but the question remains: where could they look next?

Savvy entrepreneurs understand that raising risk capital is “all about the exit.” More specifically, selling early investors on a startup deal is all…