According to new Crunchbase data, venture-backed startups are buying other startups at the highest pace in at least a decade. Private companies have bought at least 530 venture-backed U.S. startups this year, becoming “more active as buyers” in the M&A world than public companies. Of these acquisitions, more than half (268) were purchased by other startups. 

As policymakers consider restrictions on M&A, data shows they should bear in mind potential unintended consequences for entrepreneurs and startups.

Tightening antitrust will “put the brakes on M&A,” reminds Louis Lehot, a partner at Foley & Lardner LLP. “I don’t think the fact that antitrust is tightening has been a reason that people are doing deals up to now, but I think the tightening will put the brakes on M&A”

— “Lehot anticipates there will be more scrutiny of M&A deals beginning in January, and deals will take longer to complete.”

— “Buyers—before they sign on a deal—they’re going to think a lot harder on the antitrust risk and where there’s deemed to be risk they’re not going to proceed.”