For many European startups, the path to a successful exit does not necessarily lead to an IPO. Strategic acquisitions, particularly by US buyers, represent an often-overlooked opportunity for founders and investors looking to unlock value from their portfolios.
And Central and Eastern Europe may be particularly well-positioned to benefit. With strong technical talent, capital-efficient businesses, and competitive valuations, CEE startups are increasingly attracting the attention of American acquirers. Yet many founders and VCs still underestimate the potential of M&A as an exit strategy.
Ahead of Engaged Investments 2026 (21–22 October, Prague), Petr Šíma, General Partner at DEPO Ventures, spoke with Ben Kolada, Director and Head of US Tech Investment Banking at ICON Corporate Finance, about what US buyers look for in European tech companies, why European corporates are less aggressive in acquisitions, and how founders can position their businesses for a successful exit.
Petr: Ben, you advise tech companies on M&A from San Francisco, yet most of your clients are in Europe. How did that happen?
Ben: About 90% of my clients are headquartered in Europe, a few are Israeli, and only a handful are American. My job is mostly bringing great European companies in front of US buyers. ICON is a UK-HQ’ed investment bank with more than 20 bankers and over 300 transactions behind us, so we work both sides of the Atlantic. Personally, I focus on data management, data governance, AI, deep tech and infrastructure software. I’ve probably done more data software deals than any other banker.
Petr: Every VC I speak to faces the same challenge. Many of their portfolio companies won't raise another round, but they're still good businesses. What happens to them?
Ben: That's exactly the opportunity. For most of these companies, an IPO isn't the realistic outcome. A trade sale is. The question is how you package and position them. We recently sold ROI Hunter, a company from Brno, to Pattern in the US. It was e-commerce on the surface, but what made it valuable was the data layer underneath, and that's what we built the story around.
Petr: Are American buyers really looking at Central and Eastern Europe right now?
Ben: Very much so. Many US acquirers come to Europe looking for better value. I’ve heard some acquirers say the AI talent and technology in CEE is sometimes stronger than what they see back in their home markets in the US. That stuck with me. CEE companies tend to be smaller, but they're run with financial discipline and have excellent products, talent and technology.
That's why we deliberately target the region, and Czechia in particular. I have acquirers asking me specifically about opportunities in this region and there is a growing number of M&A and fundraising transactions from Americans buying into CEE tech companies.
Petr: Why aren't European corporates doing more of the buying themselves?
Ben: Europe has some great acquirers, like SAP, OVH (I sold a company to them) and a growing list of unicorns. But the DNA for aggressive expansion often isn't there. A good example to look at is Matillion, a UK data management unicorn ICON helped with its Series A. It has never made an acquisition, while its US competitor Fivetran has done probably more than a billion dollars' worth. The data shows that European acquirers could be a lot bolder.
Petr: Is there an upside to the European way?
Ben: A big one. While European acquirers tend to be more conservative, which may hold them back, that same cautious approach can work in European startups' favor during an M&A exit. Many US founders raise $100–200 million and then sell for about the same, so sometimes they may walk away with very little. European founders raise $5, 10 or 20 million, often bootstrap, and make real money on exit. Honestly, those are the more fun deals to work on.
Petr: What should founders and VCs do if they see a company heading toward a trade sale?
Ben: Start early, and be selective about advisors. Bankers do best where they have real sector expertise and geographic reach. At ICON, we pass on deals where we don't have a strong point of view and refer them to firms that do. The advisory world is small, and most bankers want what's best for the company. And don’t wait until the excitement in your portco (portfolio company) or your startup is gone – stale companies tend to get boring valuations. Enthusiasm for the business among the selling company's management team plays meaningfully into M&A valuations.
Petr: What can people expect from you at Engaged?
Ben: My keynote on Day 1 will focus on what US strategic buyers look for in European tech companies and how to get a business ready for that conversation. My colleague Florian Depner will speak on Day 2 and will share his experience from a PE transaction. Prague is the right place for it, because there's a lot of value in this region that's still untapped.
Editor's note: This article is based on a conversation between Petr Šíma of DEPO Ventures and Ben Kolada of ICON Corporate Finance, published ahead of Engaged Investments 2026. The views, opinions, and data shared reflect those of the participants and have not been independently verified by The Recursive.