“Those acquisitions feed returns for the backers of those target companies, who then are able to distribute those funds and then easily fundraise again for their new funds, and then put more money into the startups,” said Michael Torosian, a partner at law firm Baker Botts' startup and VC practice.

https://news.crunchbase.com/news/startups-are-acquiring-other-startups-at-an-unprecedented-pace/?utm_content=intro&utm_term=content