Big Tech is getting its appetite for acquisitions back. Alphabet is reportedly in talks to buy cybersecurity firm Wiz for US$23 billion, which would be its biggest startup acquisition ever. Meta is also reportedly exploring a big stake in Ray-Ban owner EssilorLuxottica, which Meta is currently making AI smart glasses with.
Regulatory hurdles might not seem as high. Competition authorities wary of how much control Big Tech has in the sector have scared a lot of companies off from big acquisitions recently. But the fact that deals like these — or even Alphabet’s now-shelved plans to buy marketing software firm HubSpot — are something these companies are exploring suggest they have done the math and figured out that it’s worth the headache.
This could be a good environment for Canadian startups. Several venture capital investors Peak Tech has spoken to in recent weeks believe the Canadian IPO market is still going to be dead for some time. An acquisition — like Apple buying DarwinAI, Bell buying CloudKettle and Stratejm, or Interac buying Vouchr — might be the most attractive option for founders seeking an exit.