You hear a lot of negativity about tech startups these days. Overvalued companies, saturated markets, a dangerous deal-making plateau. Headlines that make sweeping statements about the health of the whole sector based on single examples.

The truth is that the startup-tech world is very healthy. It continues to innovate and create value — and the facts are there for all to see in 2016’s technology M&A numbers.

On the surface the numbers looked normal, or even negative. Overall tech M&A volume last year was $467bn, up only slightly on 2015’s value of $460bn. At the same time, the aggregate value acquired by tech buyers fell 23 per cent to $269bn in 2016 from $350bn in 2015.

But look at the number of non-technology companies acquiring tech startups. This is where you see an interesting, and surprising, trend. These values are up, and they are up massively.

These values are up, and they are up massively

Look at established firms, like Verizon in telecoms, Ford in automotive, and Walmart in retail. Established behemoths entering the tech M&A market, demonstrating that the startup market has grown both wide and deep enough to help large corporations scale, adapt and transform their business models over time.