Tuesday 13th Apr 2010
Calibre One News
Calibre One publishes Q1 2010 Global Tech Investment Review
Richard Brennan, Partner commented "The strong end to 2009 has sparked an encouraging start to 2010 for European Investors. According to the Index the number of investments across Europe has increased from 12 months ago. This willingness to invest, albeit in smaller amounts, should herald a more positive outlook for the remainder of 2010.
The capital markets have remained steady which is an encouraging sign and research suggests that the investment community is anticipating clear growth in investment compared to 2009. The Cleantech sector, and specifically energy storage and efficiency as opposed to renewables, will see significant investment, especially in light of the support from Government led programs. It is no coincidence therefore that following this increase in activity by equity firms a noticeable demand to hire key individuals into portfolio businesses has occurred. As the market continues to improve, the strength and quality of executive teams becomes ever more crucial."
Michael Lee, Partner said, "In the US, Q1 was an increasingly buoyant period. We have experienced a rising trend in the early-stage market; companies and venture firms mandating the hiring of a large number of critical roles. These hires invariably represent a growth-oriented hiring strategy.
M&A activity has increased and the quarter was strong for IPOs; every technology IPO in March rose above its offer price. Interestingly, the number of IPOs in Q1 exceeded the number of IPOs for all of 2009. Some public entrants, such as our client Meru Networks, had an increase of 28% above offer price. Our expectation is that this year will continue to be solid with continued early stage and growth financings. And with the number of S1s lined up, the IPO market will continue to prosper."
The Calibre One Index is produced quarterly, every January, April, July and October and can be found at Calibre One’s website (www.calibreone.com).
