160 Enterprise Software Startups That Could Be for Sale This Year

2026-07-16 · Source: The Information · Field: Business & Management — Entrepreneurship & Start-ups, Corporate Strategy & Leadership · Depth: Fundamental Awareness, quick

Summary

Over 160 privately owned U.S. enterprise software startups, valued at \$1 billion or more, are facing significant pressure to sell this year. These companies, many of which secured high valuations between 2020 and 2022, are struggling due to venture capitalists shifting investments towards AI, a sharp decline in public enterprise software stock values, and investor demands for cash returns. The Information identified these potential acquisition targets by screening for firms that have not publicly announced funding in at least two years, according to PitchBook data, and by consulting over 30 founders, investors, and bankers. This number has nearly doubled since the last compilation, indicating a growing trend of forced exits in the sector.

Key takeaway

For investors seeking M&A opportunities in enterprise software, you should prioritize targets that raised significant capital between 2020 and 2022 but haven't secured new funding in over two years. This cohort, now exceeding 160 companies, faces heightened pressure from VCs to exit, potentially offering more favorable acquisition terms. Focus your due diligence on these firms to capitalize on current market dynamics.

Key insights

Many highly valued enterprise software startups face acquisition pressure due to shifting VC priorities and market downturns.

Principles

• High valuations increase exit pressure.
• VC funding shifts impact non-favored sectors.
• Public market trends influence private exits.

Method

The method involved screening private U.S. enterprise software firms valued ≥\$1 billion, lacking public funding in ≥2 years (PitchBook), and consulting industry experts.

In practice

• Identify firms with old funding rounds.
• Monitor VC investment shifts.
• Assess public market sector health.

Topics

• Enterprise Software
• Startup Acquisitions
• Venture Capital
• M&A Strategy
• Market Valuations

Best for: Investor, Entrepreneur, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Information.