Despite End of IPO Drought, U.S. Venture-Backed Liquidity Market Hovers at 6-Year Low
2009年7月1日 - 4:01PM
PRニュース・ワイアー (英語)
Dow Jones VentureSource: VC-Backed IPOs, M&As Net $2.8 Billion
in 2nd Quarter, Down 57%; Median M&A Price Falls to $22
Million, Lowest Since 2003 SAN FRANCISCO, July 1 /PRNewswire/ --
Even with the end of a nine-month drought in initial public
offerings (IPOs), the second quarter was one of the worst for
venture capital-backed liquidity since the doldrums of early 2003,
according to leading industry tracker Dow Jones VentureSource.
Overall venture-backed liquidity fell 57% from $6.48 billion in the
second quarter of 2008 to $2.8 billion in the most recent quarter.
Venture capitalists generated $2.57 billion through mergers or
acquisitions (M&As) of 67 portfolio companies in the second
quarter, a 60% decline from the $6.48 billion raised via 89
M&As in the same quarter in 2008 and the lowest quarterly
M&A deal total since 1999. Three venture-backed companies made
public-market debuts in late May and June, raising a total of $232
million. In the prior 13 months, only one other VC-backed company
completed an IPO, in August 2008. "The IPO window appears to be
opening as the first three public offerings since the third quarter
of 2008 closed in the second quarter," said Jessica Canning,
Director of Global Research for Dow Jones VentureSource. "The
success of these transactions is clearly a testament to the
strength of these companies and their ability to close deals in
current market conditions." M&As: Even with Lower Prices, Still
No Rush to Buy According to VentureSource, the overall median
amount paid for a venture-backed company in the second quarter of
2009 was just shy of $22 million--a 46% drop from the nearly $41
million median paid during the same period in 2008. "As valuations
continue to fall, the market appears to be correcting the possibly
inflated figures posted in 2007," said Ms. Canning. Less Money,
Time Needed to Achieve Liquidity The data showed that, prior to
achieving liquidity via a merger or acquisition in the second
quarter, companies raised a median of $16.3 million in venture
capital, 30% less than the $23.4-million median seen during the
same period last year. In addition, the median amount of time it
took to reach liquidity via M&A was 4.5 years, 25% less time
than the 6-year median in the second quarter of 2008. Ms. Canning
added: "This is the second straight quarter of reduced time to an
M&A, marking a potentially emerging trend for this source of
liquidity." The two largest M&As of the quarter belonged to
Cisco Systems, which bought San Francisco.-based Pure Digital, a
maker of digital camcorders, for $590 million and Tidal Software of
Palo Alto, Calif., a maker of workload management software, for
$105 million. The largest IPO belonged to SolarWinds of Austin,
Tex., which raised $113 million in its May IPO. The company makes
network and performance management tools for the enterprise. About
Dow Jones VentureSource's Research Methodology The investment
figures included in this release were collected by surveying
professional venture capital firms, through in-depth interviews
with portfolio company CEOs and CFOs, and from a number of
secondary sources. These statistics represent equity investments
into early-stage, innovative companies only and do not include
companies receiving funding solely from corporate, individual,
and/or government investors, or from buyout or other non-VC
investment firms. For more information, please call 415-439-6666 or
e-mail , or follow the story at
http://www.twitter.com/djventurewire. For general information about
VentureSource, visit http://venturecapital.dowjones.com/. No
statement herein is to be construed as a recommendation to buy or
sell securities or to provide investment advice. Copyright (C)
2009, Dow Jones VentureSource About Dow Jones Dow Jones &
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