Distribution of Lower Middle Market AI M&A Deals Deals over $25M increased in volume, indicating a rising confidence among investors in mid-sized transactions.
$0 - $25M $25 - $50M $50 - $100M $100M+
10%
8%
11%
11%
14%
18%
156
116
97
15%
11%
62%
65%
66%
9%
2022
2023
2024
• In 2024, 62% of AI M&A deals are still under $25 million, highlighting the emphasis investors place on gaining access to innovative technology and talent during the early stages of a company’s lifecycle. • However, there has been a noticeable shift toward mid-size AI M&A deals, particularly those valued at $25 million or more. In fact, 38% of transactions in 2024 fell into this category, up from 34% in 2023. • Although the number of deals may have decreased in 2024, the overall value of these transactions is rising, indicating a growing trend of companies prioritizing the acquisition of more significant assets. This shift reflects increased confidence in larger, strategic acquisitions designed to drive innovation and long-term growth in the AI sector.
Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed.
18
Made with FlippingBook Digital Publishing Software