Acquisitions of U.S. startups by private equity firms have surged in 2024 and continue strongly into 2025, with 22 acquisitions of seed- or venture-funded companies already recorded this year, according to Crunchbase data. The first quarter of 2025 saw global venture capital funding reach $120.9 billion, the highest quarterly total since mid-2022, driven by major raises such as OpenAI's $40 billion round and a rise in mega-deals, despite an overall drop in deal volume. Additionally, Q1 2025 marked the strongest quarter for startup mergers and acquisitions (M&A) by dollar volume since 2021, totaling $71 billion globally. Buyers in these transactions include strategic buyers, private equity firms, and well-funded startups acquiring smaller competitors. Industry observers note a notable trend of venture capital firms increasingly engaging in private equity activities, a shift initiated in recent years by firms like Sequoia and Andreessen Horowitz through structural changes. This transition reflects a broader strategic realignment within the venture capital landscape.