Current State of Unicorn Exits

According to recent analysis, if the existing pace of exits continues, it will take approximately 30 years for all companies listed on the Crunchbase Unicorn Board to either go public or be acquired. This marks a notable improvement from nearly a year ago, when the backlog stood at an estimated 49 years.

Recent Increase in Exit Activity

Over the past year, there has been a resurgence in exit activities. Data from Crunchbase indicates that 25 venture-backed firms with valuations of $1 billion or more have either gone public or been acquired.

Highlights of Recent Exits

Significant IPOs

In a remarkable development, CoreWeave, a provider of AI cloud infrastructure, executed the largest tech IPO in several years with its debut in March. Since then, its stock has risen by over 20% from its initial offering price.

Major Mergers and Acquisitions

On the M&A front, Google announced plans in March to acquire Wiz, a cybersecurity unicorn, for a staggering $32 billion. This acquisition could be the highest price paid for a private, venture-backed startup to date, although it awaits regulatory approval before closing.

Less Lucrative Exits

Not all exits have been successful in generating substantial returns. For example, Noname Security, a cybersecurity firm, experienced a downturn after its peak valuation. It raised a Series C round at unicorn status in 2021 but was sold to Akamai Technologies for roughly $450 million last summer.

Additionally, Candy Digital, a startup focused on digital collectibles, was recently sold to the branding platform Futureverse. While the sale price remains undisclosed, the nature of the acquiring company suggests the exit was not at a unicorn-level valuation.

Looking Ahead

The outlook for additional exits remains uncertain. Currently, the tech IPO market is relatively stagnant, indicating that public markets are unlikely to yield immediate returns. However, there are optimistic forecasts for a potential uptick in new offerings late this year or early next year.

In the M&A landscape, large tech companies possess the financial capacity for significant acquisitions. Whether they will act on this potential remains to be seen.