Thursday 1st Apr 2010
Market News
Venture-Backed Exit Activity Shows Improved Signs of Life in Q1 2010
All-time Record for Venture-backed M&A Exits; Nearly All Venture-backed IPOs Trading Above Offer Price
The quarter ended with nine venture-backed Initial Public Offerings (IPOs) and 111 M&A transactions. For the first quarter, 31 disclosed venture-backed M&A exits averaged $180.2 million, which was 21 percent higher than the total average disclosed transaction value for all of 2009.
"The exit activity in first quarter of 2010 has engendered a cautious optimism within the venture capital industry," said Mark Heesen, president of the NVCA. "The IPO volume, while not nearly enough to declare a recovery, has shown the most improvement since the financial crisis began and the pipeline of companies in registration continues to build. The record breaking number of venture-backed acquisitions is also encouraging as the quality of these transactions appears to have held strong. It is premature to suggest we have permanently turned the corner, but that corner is in sight and within reach as long as we can continue this positive upwards trajectory over the next consecutive quarters."
