Liquidity Markets Show Signs of Life as U.S. Venture-Backed IPOs Raise Most Capital Since 2007; M&As Remain Scarce
2009年10月1日 - 6:00PM
PRニュース・ワイアー (英語)
Dow Jones VentureSource: M&As and IPOs Net $2.7B Down 49% From
A Year Ago; Upswing on the Horizon with Over $1 Billion in M&As
Expected to Close in 4th Quarter SAN FRANCISCO, Oct. 1 /PRNewswire/
-- The third quarter proved to be a mixed bag for U.S. venture
capitalists as capital raised via initial public offerings (IPOs)
hit the highest level since 2007, but mergers and acquisitions
(M&As) of venture-backed companies totaled 71, consistent with
pre-boom numbers of 1999, according to leading industry tracker Dow
Jones VentureSource. Overall, venture-backed liquidity is down 49%
from $5.32 billion in the third quarter of 2008 to $2.70 billion in
the most recent quarter. "While we're not seeing 2007's
double-digit totals, the liquidity market for U.S. venture-backed
companies is showing signs of a significant thaw," Jessica Canning,
director of global research for Dow Jones VentureSource said. "The
trickle of venture-backed IPOs over the past two quarters appears
to be growing into a steady stream, which is a welcome sign of
recovery for investors." Scott Austin, editor of Dow Jones
VentureWire, a prominent industry newsletter, said: "There are
certainly hints of optimism. Public investors are taking chances on
IPOs again and corporate acquirers are shopping for promising
start-ups in select industries. But the reality is that 2009 will
remain a slow year for venture exits overall. Based on
conversations with industry insiders, I'd expect to continue seeing
massive consolidation in certain sectors and a high level of asset
sales. Most venture investors are looking to 2010 for a rebound."
The $451.25 million venture-backed companies generated through two
IPOs in the third quarter is largely thanks to A123 Systems
garnering $371.25 million in a late September IPO. M&A Market
Still Soft, Despite Low Prices According to VentureSource, M&As
raised $2.25 billion in the third quarter of 2009 through the sale
of 71 companies, down 56% from the $5.16 billion raised in the same
period last year. The $22 million median amount paid for a
venture-backed company in the most recent quarter is a 52% drop
from the $46 million median paid during the same period in 2008.
"While it appears that the market is still holding back despite
lower valuations, an upswing in M&A activity is on the
horizon," said Ms. Canning. "We will see an influx of more than $1
billion if Amazon.com's purchase of Zappos and CA's purchase of
NetQoS close as planned in the fourth quarter." Less Money, More
Time Needed To Achieve Liquidity In the third quarter, companies
raised a median of $16.50 million in venture capital before
achieving liquidity through a merger or acquisition. This is 21%
less than the $20.85 million median seen during the same period
last year. In addition, it took a median of 6.13 years, 23% more
time than the 5-year median in the third quarter of 2008 for a
venture-backed company to reach liquidity via a merger or
acquisition. The largest M&As of the quarter belonged to the
tech industry with VMware purchasing SpringSource, a provider of
enterprise Java infrastructure software, for $362 million and
Intuit paying $170 million for PayCycle, a provider of online
self-service payroll for small businesses. In addition to the A123
Systems IPO, LogMeIn, a Woburn, Mass.-based provider of on-demand
remote connectivity solutions for the enterprise, completed an $80
million public offering in July. 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 deeper analysis, download the
complete report from Dow Jones VentureSource at
http://www.fis.dowjones.com/VS/3QUSLiquidity.html. You can also
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 © 2009, Dow Jones
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