Between 2010 and 2025, the number of acquisitions funded by venture capital in Europe increased 18 times, rising from 62 to 1,090 transactions over 15 years, according to data from Dealroom. The growth accelerated after 2020, the year of the Covid-19 pandemic, with European startups making acquisitions that increased by 250 percent over the past six years. Interestingly, the average value of these deals has decreased over time, falling from 66 million euros in 2010 to about 18 million euros in 2025. This trend reflects the growing popularity of smaller deals, often under 10 million euros, showing that more startups are able to participate in acquisition activities. As the European startup ecosystem has matured over the past decade, young technology startups have increasingly become acquirers, aiming to consolidate their positions within their respective industries. The number of venture-backed companies in Europe has also grown significantly, from 13,000 in 2015 to 40,000 today. To grow, these startups are increasingly turning to external growth, such as acquiring complementary companies. This trend has prompted the pan-European venture capital fund XAnge to develop a detailed guide to help founders navigate the acquisition process. Buy to Grow: The M&A Playbook for European Founders, a 100-page operational guide, covers the entire acquisition cycle, from strategy and target identification to financing, negotiation, integration, and value creation. The guide aims to help founders choose the right targets and successfully integrate them into their businesses. One of the biggest challenges in acquisitions, according to XAnge, is that nearly 70 percent of deals fail to meet their expected value. Nicolas Rose, Managing Partner of XAnge, compares the acquisition process to a complex fundraising effort, noting that it involves more stakeholders, such as bankers and M&A teams. He emphasizes that board alignment is crucial at the beginning, and using external resources for M&A can be a key success factor. XAnge recently launched a new investment vehicle with a first closing of 200 million euros, reflecting the growing importance of M&A in the startup world. According to Rose, the most well-funded startups have the most flexibility to pursue external growth, as their funding status directly influences their ability to make acquisitions. The AI sector is currently experiencing a surge in acquisitions, with transactions in this field accounting for nearly 14 percent of all European acquisitions in 2025, a 50 percent increase over two years. This marks a shift from the earlier dominance of the SaaS and fintech sectors, which had the most transactions since 2010. AI has now become the third most active sector in terms of acquisitions, but it is growing rapidly. For instance, Mistral, an AI startup founded in 2023, has already made several acquisitions, including Koyeb and Emmi AI, and recently completed a funding round of 3 billion euros. As the AI boom continues, XAnge hopes that its M&A playbook will serve as a guide for entrepreneurs navigating the increasingly complex landscape of European acquisitions.