The AI land grab is on. Later-stage startups and Big Tech are racing to acquire early-stage AI infrastructure and SaaS innovators. The surge of AI adoption has created a new wave of M&A activity — with later-stage startups and Big Tech actively acquiring early-stage AI SaaS and PaaS companies to accelerate product integration, infrastructure capabilities, and talent growth.
Pitchbook data from Q3 2025 indicates that in 2025, 75% of acquisitions occurred only after Series A. Likewise, Carta data suggests that "startup acquisitions were up about 18% from H1 2024 to H1 2025 among Carta companies, but that increase was driven entirely by a 30%+ jump in M&A among the early stage population ... The three major acquirers of tech startups are Big Tech, PE, and other startups, typically in that order (although more PE happens at the growth stages)."
Sources indicate that the trend will continue. Crunchbase data from August 2025 indicates that "[i]n the first half of 2025, there were 427 reported M&A deals globally in which startups bought other startups … representing an 18% increase,” and a subsequent Crunchbase article in December 2025 predicted an acceleration of the trend in 2026.
Join our expert panel of investors and advisors as they unpack what’s driving these acquisitions, how deals are structured, and what early-stage founders should know to position themselves for a successful exit.
Questions Discussed:
1. What metrics acquirers look for in early-stage AI SaaS and PaaS targets;
2. The rise of “acqui-hire + tech” hybrid deals;
3. Valuation trends, strategic premiums, and earn out structures;
4. Legal and due diligence pitfalls for AI startups seeking to be acquired; and
5. M&A market expectations for early-stage AI SaaS or PaaS startups in 2026.
Host & Moderator:
Bharat Kanodia, Veristrat
Panelists:
Shawn Flynn, SVH Capital
Samantha Huang, BMW iVentures
Erica Jiang, Loyal.VC
Tejal Shah, US Capital
Lindsey S. Mignano, SSM
MCLE:
0.50 General Substantive Credit Hours
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