VC-backed companies are on the lookout for more startups, increasing their buying power.

While not exactly a shopping spree, there's a notable trend of startups pursuing acquisitions of other VC-backed companies in the U.S. Startups acquiring other startups are on track to constitute the largest share of the M&A market in years for VC-backed U.S. startups. This shift is particularly significant given the current environment, where venture capitalists and their limited partners are seeking liquidity due to a stagnant IPO market and subdued M&A activity. According to Crunchbase data, 252 deals involving startups buying other startups have occurred in the first two-thirds of the year, making up 39% of all M&A deals for U.S.-based startups—the highest percentage seen in at least a decade.