BeReal's Surprising Sale Is a Positive Sign for Startups

BeReal was the hot app among venture capitalists and Gen Zers in 2022, a feat it used to lasso a $585 million valuation from Coatue Management and DST Global that year. The app’s once-scorching growth has cooled—yet it still managed to sell itself to French gaming company Voodoo for $537 million. In this era of fire sales, that’s cause for a celebration.

“You’re seeing an M&A market opening up that’s been totally frozen over since late 2022,” said Natalie Dillon, a partner at consumer technology–focused venture capital firm Maveron, which wasn’t involved in the deal. 

She added that more sales like BeReal’s—deals with reasonable prices that still fall short of investor expectations—are coming because of pressure on VC firms from their limited partners. “LPs are looking at VCs and saying, ‘You guys got all these great mark-ups, but at a certain point you have to fulfill your promise of returning capital.’”