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Why Series A startups get acquired the most
Early-stage startups get acquired the most, why this startup sold just one year after its raising $60 million, and more...
SearchVentures
April 09, 2025
Early-stage startups lead in acquisitions
Early-stage startups continue to see the most exits, particularly at Series A, outpacing their late-stage counterparts in every year since 2021.
Why do Series A startups get acquired the most?
This Week’s Trends
Series A startups get acquired the most
Startup that was sold despite raising $60 million
$20 million solo accelerator and more
Read Time 3 minutes
The Startup Trend
Early-stage startups get acquired the most
The data highlights 1,132 startup acquisitions from H1 2021 to H1 2024, showing that most M&A activity is concentrated in Pre-seed to Series B rounds.
> Series A startups have led acquisitions every year since 2021 with nearly 100 startups being acquired at this stage in H1 2022 alone.
> Pre-seed and Seed rounds also remain highly active, showing consistent interest in potentially undervalued companies, often for talent or product integration.
💡 Despite the media spotlight, Series D and E+ exits remain rare as late-stage startups either stay private longer or face higher acquisition barriers.
Startup Feature
Why Circ Was Acquired Just After Its Series A Round
Circ launched in 2018 as one of Europe’s fastest-growing micromobility startups. The Berlin-based startup raised $60 million in Series A funding just months after launch. It expanded into more than 40 cities, built its own scooters, and aimed to win the European market before US rivals like Bird and Lime could get there.
But just one year after its Series A, Circ sold to Bird in an all-stock acquisition. The deal marked one of the fastest turnarounds for a funded startup in European mobility.
“With deep city partnerships and leading technology, we have established ourselves as the micromobility leader in Europe.”
Building Fast Then Selling Early
Circ was started by Lukasz Gadowski, best known for founding Delivery Hero. He raised a $60 million Series A from Target Global and others just five months after launching, positioning Circ as a fast-moving player in Europe’s micromobility scene. The startup focused on building a capital-efficient operation with its own hardware, logistics systems, and local teams.
At its peak, they operated across 12 countries, with over 300 employees and thousands of scooters on the ground. But cracks started to show in late 2019. The startup laid off staff, pulled back from expansion plans, and began looking for strategic options. By early 2020, Bird stepped in and acquired the startup.
“Circ’s operational focus and team would help strengthen our European footprint, as we expand with our existing capital”
But the integration was rocky. Within five months, Bird shut down Circ’s operations in the Middle East and reportedly scrapped more than 10,000 of its scooters. Dozens of former Circ employees were laid off as Bird streamlined its business under growing investor pressure.
A Fast Lesson in Scaling Smart
Circ’s rise and sale underscore a pattern that played out across the micro-mobility sector. Dozens of well-funded startups raced to dominate city streets, only to face tough regulations and thin margins. The push for scale often came before long-term business fundamentals were proven.
Despite raising a large Series A, Circ struggled to achieve the kind of unit economics needed to justify further standalone growth. For Bird, acquiring Circ was a way to accelerate market entry and remove a competitor. But for Circ, it marked an early exit to a short-lived sprint.
“Micromobility is not just a land grab. It’s about building sustainable operations city by city, but it is easier said than done.”
By mid-2020, the Circ brand was retired. The startup’s assets were folded into Bird’s European business, and its original ambitions were never fully realized.
Sponsored by Ryse
Google purchased Nest ($3.2B), Amazon acquired Ring ($1.2B)…
And now, RYSE is aiming to be the next big smart home acquisition.
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Past performance is not indicative of future results. Email may contain forward-looking statements. See US Offering for details. Informational purposes only.
Headline News
This Week In Startups ✍️
Founders
> Ryft, a Manchester-based fintech offering embedded payment solutions for digital platforms and marketplaces, has raised £5.7 million in Series A.
> Tomorro, a French start-up, which specializes in AI-powered contract management, has raised €25M in a funding round led by XAnge and Acton Capital.
> VESTIGAS, a Munich-based startup, pioneering digital delivery note processing in the construction industry, has secured €8 million investment.
Investors & VCs
> Outlier Grove, started by a former Accel investor, Candice du Fretay, is launching a solo fund of $20 million to accelerate European B2B Startups in the US.
> British Business Bank, one of Europe’s most active LPs, backing VCs like Balderton Capital and Atomico, retires British Patient Capital sub-brand.
> Elbow Beach, one of the UK’s most active specialist climate impact seed investors, has achieved the first close of its second fund at £63 million.
Cheers,
Odin Lund & Hari Mohandas
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