M&A Activity Heats Up with High-Profile Deals in Tech Industry
Welcome to Startups Weekly
Your weekly recap of everything you can’t miss from the world of startups.
Most Interesting Startup Stories from the Week
Just when we thought things were settling down, the tech industry has been shaken up with some major developments. Let’s dive in and explore what’s new.
Google Pursues Another Big Acquisition
As you may recall, Google parent Alphabet recently abandoned its ambitions to purchase online marketing software company HubSpot. But it seems that wasn’t the end of their M&A spree. TechCrunch has learned that Google is now in advanced discussions to pay $23 billion for Wiz, a cloud security startup with astronomically fast revenue growth.
Wiz, which is just four years old, has already achieved $500 million in annual recurring revenue (ARR). But will the company agree to sell itself now and forego its IPO dreams? A person close to the company told us that there’s a 50% chance the deal won’t happen. Only time will tell if this acquisition goes through.
SoftBank Eyes AI with Graphcore Acquisition
Another major development in the world of startups is SoftBank’s acquisition of Graphcore, a U.K.-based AI chipmaker once considered to be an Nvidia rival. While Graphcore’s processors’ popularity is nowhere near Nvidia’s, SoftBank hopes that the chipmaker will play a big role in its pursuit of AI riches.
Deel Continues M&A Streak
Payroll provider Deel has been on an acquisition spree this year, and it just got bigger. This week, it scooped up Hofy, a startup that delivers and manages equipment for remote office workers. We understand that Deel paid over $100 million for Hofy, which raised $30.2 million from VCs.
Head-Shaking Sale
In 2018, investors touted HeadSpin as ‘one of the fastest-scaling software companies’ ever. By 2020, it was valued at $1.1 billion. But then its founder pleaded guilty to overstating revenue and went to prison for fraud. Now, HeadSpin has been bought by a private equity firm in a deal reportedly worth around $150 million. Talk about a wild ride.
Other Notable Stories
- Uber CEO Dara Khosrowshahi resigns from self-driving truck startup Aurora’s board.
- Fintech companies are hiring in 2025 after a turbulent year.
- Cloudflare’s VPN app among half-dozen pulled from Indian app stores.
- Robotics companies are hiring.
What You Need to Know
AI fundraising is on a tear, but did you know that this year the number of AI companies that raised $100 million rounds or higher already stands at 28? We expect this list to keep growing in the coming months. Stay tuned for more updates from the world of startups.
Topics Covered
- Deel
- Graphcore
- Mergers and Acquisitions
- Softbank
- Startups
- Wiz
About the Author
Marina Temkin is a venture capital and startups reporter at TechCrunch. Prior to joining TechCrunch, she wrote about VC for PitchBook and Venture Capital Journal. Earlier in her career, Marina was a financial analyst and earned a CFA charterholder designation.
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