What's the deal? The Tech M&A & Fundraising Newsletter - Cut The Noise
Venture funding increases with AI keeping the lead, runways shorten with startups feeling increasing pressure as their options reduce and Private Equity enters the fold to provide liquidity for LP’s.
Welcome to What's the Deal? - your monthly deep dive into the strategic currents defining the tech investment landscape. This edition unpacks the latest data and reports with a unique perspective on the trends shaping startup fundraisings in Q1-25. This edition focuses on the Deal Dream Team, and who you want by your side when there’s a crucial game to play.
A note from the Editor - CEO Claire Trachet
“Last month’s newsletter focused on staying the course, despite the challenges of navigating an unpredictable market. A discussion unfolded with one of our readers, which inspired this edition's focus on how to "cut out the noise".
“Founders and investors are being bombarded with vast amounts of information and conflicting signals. On the bright side, February alone saw European M&A spring back to life with $10bn announced in deals, followed by a strong March with the Wiz acquisition - the largest VC exit through M&A (assuming it closes!). Venture funding also saw a decent boost over the past few months, with 2024 ending at $204bn or a 30% YoY increase.
“However, nearly half of VC funds flowed to AI startups, widening the gap between those attracting capital and those forced to find other solutions. SVB’s State of the Market 2025 report shows median startup cash runway has dropped to 12 months - the lowest since 2019 - while Series A activity is at its weakest since 2012. Are early-stage startups stuck? One might read these numbers as the results of a broadening of options for founders, who learnt from the past few years' perma-crisis that there are alternatives to building great businesses beyond the VC-funding way.
Meanwhile, global trade and regulatory uncertainty keep increasing, unsettling public markets and keeping IPO activity weak. Yet, capital remains for those who know where to look - Private Equity is filling liquidity gaps, secondary markets are maturing, and alternatives sources of capital (family offices, slower but profitable growth) are emerging as viable alternatives, offering strategic founders options to secure the funding of their and push forward towards their vision.
So, what does this mean for founders? Now is not the time to get distracted by the new trend each day. Instead, the focus should be on preserving optionality – strengthening fundamentals, managing cash flow, and ensuring that when a deal is on the table, you're ready to make the most of it and not going to play defence.
And this is where your preparation and your team make all the difference. In this month’s What’s the Deal?, we break down how to select your deal-making dream team – one that can navigate market uncertainty, manage risk in-line with the overall goal, and ensure that when opportunity knocks, you play your best game.
Because in times like these, the winners aren’t those who move the fastest – but those who keep resolute focus on their goal, cutting the noise around them to stay the course.
The Deal Dream Team
As a founder, preparing for an exit is a complex, time-intensive and lengthy process. No shortcuts. However those who plan strategically set themselves apart and increase not only the chances of success of the transaction, but the outcome of the transaction itself. Being surrounded by the right team increases your odds of closing a deal and achieving the valuation & terms you aimed for, while ensuring the business remains resilient throughout the process.
Think of it as assembling an A-team squad - each member plays a key role each in their position and when you play together as a team you can aim at maximising value, managing risk, and keeping negotiations on track.
A well-picked team ensures you can play offence during the transaction rather than being stuck in defence continuously playing catch-up. The right team will help smoothen what will undoubtedly be a bumpy road.
The Team Sheet for your Deal Dream Team
Building your Deal Dream Team
01. Attack: The CEO Every winning team needs a striker - someone who seizes every opportunity and delivers when it matters most. In M&A and Fundraising, that’s the CEO. They’re the captain, the playmaker, the one driving the deal forward. But no striker wins alone - they need a team behind them, setting up the perfect shot.
02. Midfield & 03. (Goalkeepers): The Advisor At the heart of the play is the lead advisor - your central midfielder, keeping everything moving. They set the tempo, connect the right people at the right time, and ensure the ball gets to the CEO in an optimal position. They work closely with their broader advisory team, who keep the goal, creating a seamless flow and strong backbone to your transaction.
04. & 05. The Wings: Operations (CFO/COO) Your closest operational leaders are the wings - vital to the business but staying just wide enough to maintain focus both on this ongoing transaction and critically on making the business keep performing as best as it can. They contribute strategically to the transaction, relying on the midfield to transform business fundamentals into real opportunities. Their role is to remain sharp and conserve energy to play their part when critical in the deal while focusing on the business.
0. & 07. Defence: Board and Legal Your board members and lawyers are the defenders - with your Advisor, their remain calm under pressure and step in at key moments to fortify your position. But they’re not just standing at the back - they move tactically, using strategy to create leverage or show strength when it matters most. Think Lilian Thuram in ’98 - sometimes, a defender stepping up can be the game-changer (and get you to the World Cup finals!).
No Ted Lasso-style pep talk here, but let’s just say: BELIEVE. You got the right people around you, now time to play your best game, together - and nothing is done until the final whistle.
A well-prepared team increases your negotiating power and lowers the risk of the deal falling through. Whether you're fundraising or considering an exit, structuring your dream team early allows you to drive the process, rather than react to it. Do you know who you’d recruit to be part of your Deal Dream Team?
Monthly News Roundup
Trachet in the news
→ China’s AI Hype Machine Kicks Into Overdrive - Bloomberg
Trachet CEO, Claire Trachet, discusses an AI frenzy spreading throughout China. However, the AI hype follows a decline in venture funding in China, which dropped by nearly a third last year, according to data from Crunchbase. “The country is pushing high-profile AI breakthroughs, which could be to compensate for its shrinking market share,” said Trachet.
→ The Road to Exit Amid the IPO Dry Spell - 4YFN
In 2024, global IPO volumes fell 10% according to EY. This "IPO dry spell" has left many founders grappling with limited public market opportunities for exits. However, alternative pathways - such as strategic acquisitions, private equity deals, and secondary sales - are emerging as viable options.
The panel, moderated by Oriol Juncosa from Plus Partners, saw our CEO, Claire Trachet - alongside, Kantox CEO Philippe Gelis and Cobee CSO & Co-Founder Nacho Travesi - explore the current state of the exit landscape. Highlighting success stories from the panel, insights into navigating the road to exit, and guiding founders into what lies ahead for those looking to transition in a challenging market environment.
Claire Trachet speaking on the panel at 4FYN, Barcelona 2025
→ US tariffs could force European startups to relocate - PitchBook News
“According to Claire Trachet, CEO of London-based M&A and VC fundraising advisory Trachet, the implications are difficult to predict as there would be a big difference between a 10% or 30% increase. A smaller rise would cause discomfort, but a significant hike could cause some startups to move away from the EU.”
What we’ve been reading
→ What should founders actually do after they exit? - Sifted
While fundraising decks emphasize the exit as the ultimate goal, little thought is given to what comes next for the founders themselves. Routledge shares his personal experience of feeling anxious and unsettled after selling Sanctus, despite the financial security.
→ Big Tech’s $340bn AI spending boom increases risk of a bust – The Times
Deutsche Bank warns that the current $340 billion AI investment boom, driven by tech giants like Meta, Amazon, Microsoft, and Alphabet, mirrors past economic bubbles and could lead to a bust.
→ UK delays plans to regulate AI as ministers seek to align with Trump administration - The Guardian
Reports that the UK government has postponed AI regulation plans to align with Donald Trump’s administration, prioritizing AI sector competitiveness over stricter oversight, raising concerns over online security and privacy.
→ European M&A Shows Signs of Life With $10 Billion Deal Flurry - Bloomberg
Gopinath & Aaron Kirchfeld Highlights a resurgence in European M&A activity, with over $10 billion in deals announced, including Prosus acquiring Just Eat Takeaway.com and a merger between Saipem and Subsea 7, as firms look to stay competitive amid geopolitical uncertainty.
→ State of the Markets H1 2025 - SVB
Reporting on a healthy recovery, with AI as a key driver of momentum, at company-level for the innovation economy and potential for lower interest rates to provide the liquidity needed to end the three-year exit drought.
We’re keen to hear about the key challenges (or opportunities!) shaping your company’s objectives in 2025. Email us at claire@trachet.co for more information on topics you'd like to see discussed in future issues of What’s the deal?
Overview of funding rounds by geography.
Overview of funding rounds by maturity.
An encouraging picture for EMEA Cybersecurity at Series C
The number of Series C in EMEA remained stable in 2024 v. 2023 at 23 v. 22 transactions respectively. However, Europe saw a strong improvement in deal count (doubling from 3 to 6), even overtaking North America in Q4 - albeit with smaller deal sizes.
Yet it's only less than 25% of the global Series C deal count that were recorded in Europe (EMEA) in 2024 - highlighting the critical need to grow a late-stage ecosystem in the region.
Zoom-in Cybersecurity Series C fundraisings.
Outlook for 2025 - Time to Bridge the Gap
Our Q4 analysis highlighted serious concerns about Europe's growing gap in Cybersecurity funding v. North America, despite the very positive news from Q4 at Series C.
Seed rounds have been reducing, signalling potential pipeline tension at Series A in 2025. A long-term stagnation would limit Europe's ability to scale and compete on the global stage in the coming years. A continued and concerted effort to fund the talented European Cybersecurity companies will be crucial to maintain technological leadership in the region and grow a late-stage ecosystem capitalising on the region's large talent pool and strategic opportunities.
Monthly News Roundup
Trachet in the news
→ What I learnt … about getting the best price for your company - The Times
The Times related Claire's key advice to Tech founders looking for new investment or a sale: (i) do your homework, (ii) know your numbers and (iii) be kind to yourselves.
What I learnt… About getting the best price for your company by Richard Tyler - Entrepreneurs Network Editor for The Times
What we've been reading
→ EU will stand up for itself in face of Trump tariffs threat, Macron says - The Guardian
Exploring what Trump's new tariff threats could mean for Europe, from rising prices to a potential trade war and strained EU-US relations.
→ The long hard slog to reach the goal of faster growth - Financial Times
Reflections on the UK's slow growth challenge, exploring whether better infrastructure, regulatory reform, and higher investment can help - or if it's destined to remain a long, uphill battle.
→ UK revives plan for Oxford-Cambridge Arc - Financial Times
An overview of the Government’s relaunch of the Oxford-Cambridge Arc project, aiming to boost economic output in the science-rich region with new transport links and housing, though success hinges on overcoming local opposition and infrastructure challenges.
→ DeepSeek’s ‘aha moment’ creates new way to build powerful AI with less money - Financial Times
A deep dive into DeepSeek explaining clearly how it disrupted the AI landscape ("Reinforcement Learning”), sending shockwaves to giants like OpenAI and Meta.
We’re keen to hear about the key challenges (or opportunities!) shaping your company’s objectives in 2025. Email us at claire@trachet.co for more information on topics you'd like to see discussed in future issues of What’s the deal?
Charts note: The other category includes all countries that aren’t in APAC, EMEA or North America. Sources: Crunchbase, Trachet Advisory.
Charts note (Series C): Charts are based on rounds with disclosed amounts. Secret Double Octopus had 2 rounds in Series C (one with an undisclosed amount) Excl. Unseenlabs (IoT Space), Ingeek (Network Security Consulting Services), Strider Technologies (data software) and Neuron Network (Semiconductor Manufacturer) in the refine analysis despite being included in Crunchbase data. Sources: Crunchbase, Trachet Advisory.