ServiceNow announced this morning that it is acquiring Moveworks, provider of an enterprise AI assistant platform, for $2.85 billion in cash and stock.
The deal stands out as the largest purchase of a private, venture-backed tech company so far this year, per Crunchbase data. It also comes on the heels of several relatively quiet quarters for big-ticket software startup acquisitions.
Founded in 2016, Mountain View, California-based Moveworks previously raised $305 million in known venture funding. Its last round was a $200 million Series C in 2021 led by Tiger Global Management and Alkeon Capital, at a $2.1 billion valuation.
In terms of return on investment, the biggest winners in a big M&A deal are typically early backers. In Moveworks’ case, the investors in its first reported round, a 2019 Series A, were Lightspeed Venture Partners and Bain Capital Ventures, which also participated in later financings. The company also raised a Series B in late 2019, led by Iconiq Growth, Kleiner Perkins and Sapphire Ventures.
Among venture-backed unicorns, Moveworks was touting its AI prowess even in its early days as a funded startup. Currently, it describes its primary offering as a single agentic AI assistant that can be used to build AI agents, boost productivity and automate tasks.
Today’s deal announcement offers a shot of optimism for those of us wondering what the future might hold for the huge number of still-private venture-backed unicorns that haven’t raised fresh capital for a few years. Movework demonstrates that it’s possible to exceed one’s boom-era valuation, and attract interest from a deep-pocketed acquirer.
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Illustration: Dom Guzman
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