1,825 private tech companies exited in 2013. Of these, only 1.04% were for more than $1 billion. Interestingly, the majority of exits (66%) had not raised institutional capital prior. On the back of an acqui-hiring binge, Yahoo was the year's most active acquirer. SV Angel and Accel Partners were the top investors among VC-backed liquidity events.

The entire 27-page 2013 Global Tech Exits Reportis available after logging in to CB Insights. Note: This report is only available to paid subscribers.

2013 saw 1,761 private tech companies acquired globally and 64 tech firms go public. Private tech exits hit a four-quarter high in Q4 2013 at 534 M&A deals and 23 IPOs. The 2nd half of the year saw a surge in activity with 46% more private tech M&A transactions and 63% more IPOs.

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Unicorns are rare – Just 1% of private tech companies exited for $1B+

Whether you call them unicorns or black swans, exiting for more than a billion dollars is hard.  How hard?

Just 1.04% of the 1825 tech exits last year were in the billion dollar club.  2013 saw just 19 private tech companies go public or be acquired at a $1B+ valuation. Of exits with disclosed valuations, 45% were for less than $50M. 72% of exits were for <$200M. In fact,  to meet the value of the single WhatsApp acquisition made by Facebook, one would have to acquire 78% (or 250) of the companies with disclosed M&A exit valuations in 2013.

 

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2/3 of tech firms did not raise institutional capital prior to exit

Perhaps surprisingly, 66% of tech companies that exited in 2013 had not raised institutional capital (VC, PE, growth equity) prior to exit.

techexits3Mobile dominates China exit share

Of the top 5 countries for private tech M&A and IPO activity, China saw the highest share of mobile firms being acquired as the result of significant activity in the mobile gaming space.

techexits4Nearly half of VC-backed companies raised <$10M prior to exit

Of the firms that raised prior venture capital funding, 46% of tech acquisition transactions went to companies that took less than $10M. But with the total funding needed prior to an IPO on the rise, 2013 saw 29 firms raise upward of $100M prior to exit.

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SV Angel saw the most VC-backed tech exits in 2013

The Valley micro-VC saw the highest number of portfolio tech exits in 2013, followed by Accel Partners, Lightspeed Venture Partners and Index Ventures. Note: Tech categories in the investor and acquirer league tables include internet, mobile, software, computer hardware and electronics (chips, semis)

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Eating the young – 2013′s top early-stage tech acquirers

Yahoo is the top acquirer of tech companies who raised a Series A or less of financing. Twitter also acquired a host of early-stage tech firms prior to its November IPO. Dropbox was the lone private company acquirer in the ranking.

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The entire 27-page 2013 Global Tech Exits Reportis available after logging in to CB Insights. Note: This report is only available to paid subscribers.

  • plus8star

    Now that’s interesting research! Well done guys.