Tom Loverro, partner at IVP, recently expressed cautious optimism about the current state of mergers and acquisitions (M&A) in the technology sector. After a difficult period in which many start-ups were forced to close or downsize, Loverro sees signs of recovery. He encourages founders to seize the opportunity to grow and hire.
Despite his earlier predictions of a "mass extinction event" for startups during the tough years, he notes that some companies have survived and even managed to sell, such as IBM's acquisition of SheCaught. He sees M&A activity heating up, with large companies more open to the idea of buying startups, particularly to bolster their artificial intelligence capabilities.
Loverro advises start-ups not to wait until the economic conditions are perfect before taking action. Now is the time, he says, to think about expansion and innovation, as the market improves and opportunities present themselves.
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