The basis of my argument comes from the director of competition policy at the International Center for Law & Economics, who explains it all in depth here: https://www.ft.com/content/b7fdbb35-e104-47bf-9e03-ef5d8b324...
> Moreover, start-ups depend on acquisitions. Along with
> an initial public offering, being bought is the main
> way entrepreneurs and venture capital investors can
> “exit” the firms they have built. The harder it is to
> sell your company, the harder it is to make a
> return. Fifty per cent of US start-up executives said
> that being acquired was a long-term goal, and 90 per
> cent of US start-up exits in 2008-18 happened thanks
> to acquisitions.
>
> Empirical evidence suggests investment in start-ups is
> sensitive to rules on acquisitions. One paper found
> venture capital activity grows by about 40-50 per cent
> in countries that enact pro-takeover laws, and US states
> that introduced anti-takeover laws saw a 27 per cent
> decline in VC investment deals compared with those that
> did not.