Investors predict a rise in company sell-offs in 2024

It’s been a rough few years for startups looking to exit, but companies, especially late-stage startups, can’t stay private forever. When the exit market didn’t open back up in 2023, as many hoped after a very quiet 2022, investors and founders alike decided that 2024 was the year that the exit market would defrost. The vast majority of investors responded that they think exit volume will be higher in 2024 than in 2023 and 2022, but there wasn’t consensus on what those exits would look like. Some investors are more optimistic about M&A in 2024, while others think we will see a rebound in the IPO market. While most respondents answered this survey before the Adobe-Figma deal dissolved, many VCs acknowledged that startups looking to pursue that route this year will have to be conscious of the current regulatory environment anyway.

It has been a tumultuous time for startups in search of an exit strategy, but as the saying goes, all good things must come to an end. With the exit market remaining closed in 2023, despite optimistic hopes following a quiet 2022, both investors and founders alike are banking on 2024 to be the year that the market finally thaws out. But now that 2024 is upon us, one has to wonder, do they still hold onto that belief?

To get a better understanding of what’s to come, TechCrunch+ recently conducted a survey with over 40 investors, asking for their predictions on various topics heading into 2024. One of the topics explored was the state of the exit market, and the results were promising. The majority of investors indicated that 2024 will surpass both 2023 and 2022 in terms of exit volume, but there was no consensus on what types of exits we can expect to see.

Some investors are feeling more bullish about M&A activity in 2024, while others believe we will see a rebound in the IPO market. Though, it’s worth noting that most responses were received before the dissolving of the Adobe-Figma deal, and many VCs recognized that startups looking to go public this year will need to navigate the current regulatory environment carefully.


“I believe this year will see an uptick in M&A activity,” said Don Butler, managing director of Thomvest Ventures. “The focus on solid business fundamentals and economics in the startup sector in recent years has led to a number of companies finding success in demonstrating strong growth alongside healthy financials.”

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Zara Khan

Zara Khan is a seasoned investigative journalist with a focus on social justice issues. She has won numerous awards for her groundbreaking reporting and has a reputation for fearlessly exposing wrongdoing.

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