Investments·Updated Mar 17, 2026 by DDM
Annual M&A volume fell 22% year-on-year, with Q4 deal value reaching $70.8 billion only due to Microsoft’s $68.7 billion acquisition of Activision Blizzard; excluding this, annual M&A activity declined by 80%.
Private equity and venture investment hit a five-year low in Q4, dropping below $1 billion for the first time since 2018 with a 21% decrease in deal volume.
AI-focused funding emerged as a significant driver, accounting for 28% of undisclosed deals with $319 million invested across 61 transactions.
Blockchain-related financing experienced a sharp contraction, with total value collapsing 72% to $1.4 billion for the year.
Sovereign wealth funds are playing an increasingly prominent role in the sector, highlighted by Saudi Arabia’s $4.9 billion acquisition of Scopely and a $265 million stake in VSPO.
IPO activity remained stagnant with only three offerings in 2023, though the total market capitalization of these offerings surged by 257% to $112 million.
The 2024 outlook anticipates continued macro-economic and regulatory headwinds, particularly in China, with a projected stabilization of investment and IPO activity in the second half of the year.
Annual M&A volume fell 22% year-on-year, with Q4 deal value reaching $70.8 billion only due to Microsoft’s $68.7 billion acquisition of Activision Blizzard; excluding this, annual M&A activity declined by 80%.
Private equity and venture investment hit a five-year low in Q4, dropping below $1 billion for the first time since 2018 with a 21% decrease in deal volume.
AI-focused funding emerged as a significant driver, accounting for 28% of undisclosed deals with $319 million invested across 61 transactions.
Blockchain-related financing experienced a sharp contraction, with total value collapsing 72% to $1.4 billion for the year.
Sovereign wealth funds are playing an increasingly prominent role in the sector, highlighted by Saudi Arabia’s $4.9 billion acquisition of Scopely and a $265 million stake in VSPO.
IPO activity remained stagnant with only three offerings in 2023, though the total market capitalization of these offerings surged by 257% to $112 million.
The 2024 outlook anticipates continued macro-economic and regulatory headwinds, particularly in China, with a projected stabilization of investment and IPO activity in the second half of the year.