Most Tech Startups Don’t Raise Big Money Before Exits

Money

In what’s bound to be come as a surprise to many startups, 76 percent of tech companies acquired in 2012 made their exits without raising institutional investment, according to a report from the venture capital database CB Insights.

During the year, 2,277 private tech companies were bought out for a total disclosed value of $46.8 billion. (The value of some deals wasn’t reported.) Eight of those were purchased for more than $1 billion, six in the U.S. But the big surprise was the number of companies that reached the acquisition point without outside funding beyond angel investments. Some 94 percent of acquisitions were made by strategic buyers.

“While there were no bootstrapped or only angel-funded billion-dollar exits, it is clear that there are a lot of tech companies being formed who are able to grow by reinvesting their own profits or via angel financing,” the report said.

Among the other findings:

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