A standout example of venture-backed companies finding buyers despite years without fresh funding emerged earlier this month when Uber acquired ezCater for $2.3 billion in cash, nearly five years after the Boston-based catering platform raised its last reported venture round. An analysis of Crunchbase data shows that numerous larger acquisitions of private companies this year have involved startups that haven't disclosed new investment for more than four years. The findings challenge the common assumption that a startup's exit prospects diminish when it goes years without raising new capital.
The Crunchbase analysis identified 15 deals involving well-funded companies that haven't raised equity funding for four or more years. Recent months saw several 2021 boom-era unicorns sell to acquirers, including former highfliers Airtable, Headspace, and Miro. Many of these transactions closed at valuations that, while substantial, remain well below their former peaks. Online collaboration tool provider Miro agreed to sell to Bending Spoons last month in a deal valued around $1.36 billion, a massive drop from early 2022 when the San Francisco-based company closed its last round at a $17.5 billion post-money valuation. Bending Spoons previously purchased data and workflow platform Airtable for $1.28 billion in August, barely more than one-tenth the $11 billion valuation Airtable secured in its December 2021 Series F. Fashion startup Everlane sold to fast-fashion leader Shein this spring for $100 million after securing a 2020 valuation in the hundreds of millions, while meditation and mental health app Headspace sold to Sword Health in a deal reportedly valued around $300 million, far below its peak post-money valuation of around $2.6 billion.
The report notes that even ezCater's strong performance didn't secure much of an acquisition premium from its last funding round, with Uber's $2.3 billion purchase price sitting just 53% above the $1.5 billion pre-money valuation the catering startup secured in late 2021. In the year before its acquisition, ezCater generated more than $2.5 billion in gross bookings, posting an annual growth rate in the high teens with average order sizes exceeding $400. According to the analysis, while startup investors aren't celebrating acquisitions made far under peak private valuations, they're not the worst outcome, and for startups themselves, they're also far from catastrophic.
The report explains that a major challenge for older and middle-aged startups is that valuations hit a cyclical peak in 2021 and early 2022, making it difficult for companies that raised during that period to attract fresh capital or prompting reluctance to close new rounds at reduced valuations. Even with the more recent AI boom, little capital went to this cohort. Because the 2021 boom-era rounds were quite large, funded startups commonly had the option to cut operating costs and extend their runways with existing capital, allowing quite a few companies that haven't raised rounds in years to keep operating, managing to survive and even grow without additional venture funding. For startups that go years without funding, the market seems to be signaling that high-multiple returns aren't likely in the cards, even though every unicorn investor hopes for them. The trend suggests that exit options remain available for aging venture-backed companies willing to accept valuations reflecting current market realities rather than peak-era hype. For founders and investors navigating a post-boom environment, the willingness to transact at disciplined prices may prove more valuable than holding out for vanished multiples.