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A spotlight on M&A and Venture Capital across Europe and the US

Erika McIntyre

M&A and Venture Capital crossover

Commentary from Erika McIntyre, Partner at Mishcon de Reya

The line between investment, VC fundraising and M&A continues to blur, with strategic investors increasingly seeking equity stakes as a precursor to full acquisitions. Many growth-stage companies are now exploring dual-track processes, raising capital while remaining open to strategic sale opportunities. This crossover is particularly evident in sectors such as technology and life sciences, where consolidation is accelerating.

Investor caution intensified through 2024 and early 2025, with buyers prioritising operational resilience, transparency and scalable business models. Deal structures now focus on bridging valuation gaps, using earn-outs and deferred consideration to align price with future performance. Capital is flowing to businesses with proven fundamentals, digital maturity and strategic growth, especially in technology, media and communications sectors. In today’s selective market, disciplined growth and structural strength are essential for attracting investment and ensuring deal execution.

Chris Driscoll

A view on Venture Capital across the US

Insights from Chris Driscoll, Partner at Mishcon de Reya

The US Venture Capital market demonstrated resilience in 2025, with total venture investment reaching approximately $170-180 billion, representing a stabilisation following the contraction experienced in 2022-2023. The artificial intelligence and life sciences sectors have unsurprisingly attracted substantial investor attention. Looking ahead to 2026, market sentiment suggests cautious optimism. The dry powder held by US venture funds, estimated at over $300 billion, is creating deployment pressure. In addition, a backlog of mature portfolio companies is expected to drive increased M&A activity as strategic acquirers and Private Equity firms seek quality assets.

For UK and European emerging companies considering US expansion and/or accepting US investment, the current environment continues to present a strategic opportunity. Whilst the US political climate remains noisy and subject to policy uncertainty, US investors are still actively seeking differentiated international companies with proven business models and US market readiness, particularly those that can demonstrate capital-efficient growth and clear competitive advantages in their sectors.