The Acquihire Wave: How the 2021 Seed Surge Will Reshape Tech M&A

The 49% jump in US software and AI seed funding in 2021 created a mismatch with Series A availability, reducing seed-to-Series A conversion rates by 86%. This oversupply of seed-stage companies mirrors 2015 conditions and will likely trigger a wave of acquihires—sub-$20M talent acquisitions—as incumbent companies seek AI expertise.