TLDR
– Secondary stake sales and buyouts dominated large deals in the start-up sector in the first half of 2024.
– Total funding for start-ups declined by 3.8% compared to the same period in 2023.
In the first half of 2024, secondary stake sales and buyouts led the way in large deals ranging from $50 million to $500 million within the start-up sector, despite an overall decline in total funding. Late-stage activities showed signs of acceleration during this period, with 62% of the 37 deals in the $50-500 million bracket being secondary transactions or buyouts, while external primary investment rounds accounted for only 13%. Venture capital investors were increasingly seeking partial exits from late-stage start-ups to generate returns amid a downturn in the technology market. Some notable secondary stake transactions included investments from Temasek and Fidelity in Lenskart, as well as potential investments from Peak XV Partners and Tiger Global in the e-commerce platform Meesho. Overall, companies that are profitable, on a path to profitability, or preparing to go public are expected to continue seeing strong demand for secondaries.
