Alphabet is reportedly in advanced talks to acquire cybersecurity startup Wiz for $23 billion. If completed, this would be Alphabet's largest acquisition to date. This potential deal could act as a catalyst in the sluggish startup M&A market, which saw 356 acquisitions in the first half of 2024 compared to 771 in all of 2023. According to Angela Lee from Columbia Business School, the acquisition may not solve liquidity issues for large, late-stage startups or switch IPO trends to M&A but could positively affect venture fundraising. U.S. venture capital fundraising is projected to fall below the $81.5 billion raised in 2023, less than the $191.3 billion in 2022. The acquisition of a younger company like Wiz might ease Limited Partners' hesitations and offer venture capitalists leverage in fundraising. Data from DocSend indicated increased pitch deck activity in Q2 2024, although actual deals have not significantly risen. However, the deal's completion remains uncertain and could face antitrust challenges.
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