The first half of 2025 has painted a dynamic picture of the tech exit landscape, characterized by record-breaking mergers and acquisitions (M&A) in artificial intelligence, cautious optimism for initial public offerings (IPOs), and a rising wave of secondary transactions.
According to the State of Tech Exits H1’25 report from CB Insights and EquityZen, these trends are reshaping how value is created, captured, and distributed in the tech ecosystem, with private companies leading the charge and deal structures emerging to navigate regulatory and market complexities.
AI has solidified its position as the epicenter of tech M&A activity in 2025.
The report highlights a record 177 AI acquisitions in Q2’25 alone, nearly double the quarterly average of 89 since 2020, with the U.S. driving the surge (104 deals) and Europe following (46 deals).
Private companies have spearheaded some of the largest deals, with OpenAI’s $6.5 billion acquisition of Io and Databricks’ $1 billion purchase of Neon standing out as landmark transactions.
Big tech is also rethinking its M&A strategy after years of restraint.
Meta, for instance, acquired voice AI startups PlayAI and WaveForms in July 2025—its first acquisitions since 2022—to bolster its position in human-machine interaction interfaces.
Apple’s CEO signaled openness to larger M&A deals during the company’s Q3’25 earnings call, a departure from its historically conservative approach, hinting at more aggressive moves to accelerate its AI roadmap.
These deals underscore a race to secure AI talent and technology, with enterprise buyers like IBM, Intuit, Nvidia, Databricks, and Salesforce leading the charge.
While the IPO market remained muted in H1’25, early indicators suggest a potential recovery in the second half.
The report notes that tech companies are staying private longer, fueled by record capital inflows and high valuations.
However, high-profile unicorn exits like CoreWeave’s IPO in Q1’25, which delivered a 97% increase in market cap post-listing, have sparked optimism.
The success of billion-dollar IPOs in 2024 has set a precedent, with companies eyeing public markets as macroeconomic conditions stabilize.
Still, many tech firms are opting to delay listings, prioritizing growth without the scrutiny of public reporting.
This cautious approach reflects a market still grappling with volatility, but the prospect of a rebound keeps IPO hopes alive.
Secondary transactions are emerging as a critical mechanism for liquidity in the private tech space.
The report notes year-over-year growth in secondary activity among venture capital-backed companies for the past seven quarters, driven by soaring valuations and extended private runways.
OpenAI’s tender offer in August 2025 at a $500 billion valuation—up from $300 billion—allowed employees and investors to cash out while attracting new institutional capital.
Similarly, Canva’s secondary sale at a $42 billion valuation, a $10 billion jump from October 2024, highlights this trend.
These transactions provide liquidity without the regulatory hurdles of traditional exits, making them increasingly attractive as tech companies delay IPOs.
Beyond traditional M&A and IPOs, new exit models are gaining traction.
Large minority stakes, like Meta’s $14.8 billion investment for a 49% stake in Scale in Q2’25, allow big tech to access talent and technology without full acquisitions.
Reverse acqui-hires, such as Google’s $2.4 billion licensing deal with Windsurf to hire key personnel, offer another workaround, blending talent acquisition with lucrative licensing fees.
These hybrid structures minimize regulatory scrutiny while providing partial liquidity for investors, signaling a shift in how value is distributed across founders, investors, and employees.
While H1’25 didn’t see a full rebound in tech exits, the surge in AI M&A, rising secondary transactions, and innovative deal structures point to a maturing private market.
Capital continues to flow into private tech companies at record levels, giving them more runway to delay public listings.
As big tech and private players alike compete for AI dominance, the report predicts continued consolidation and creative liquidity solutions in H2’25.
For investors, founders, and employees, these trends signal a tech ecosystem that is adapting to new realities, balancing growth with strategic exits.