Venture- Backed Exits Enjoyed Higher Average Values on Lower Total Volumes in 2012
Both IPO and Acquisition Quality Improved as Market Uncertainty Slowed Transactions in the Second Half of the Year
New York– Venture-backed initial public offering (IPO) activity raised $1.4 billion from eight offerings during the fourth quarter of 2012, a slight decline in volume from the third quarter of this year but a 23 percent increase in dollars raised compared to the previous quarter, according to the Exit Poll report by Thomson Reuters and the National Venture Capital Association (NVCA). For full year 2012, venture-backed initial public offerings raised $21.5 billion from 49 listings, and driven by the Facebook offering, represented the strongest annual period for IPOs, by dollar value, since 2000. For the fourth quarter of 2012, 95 venture-backed M&A deals were reported, 26 of which had an aggregate deal value of $3.5 billion, a 57 percent decrease from the third quarter of 2012. Acquisitions of venture-backed companies totaled $21.5 billion for full year 2012, an 11 percent decline from full year 2011.
“While the venture capital and startup communities were optimistic about a more robust IPO market in 2012, political, economic and market conditions served as the backdrop for a series of fits and starts which hurt volume growth throughout the year for public offerings and acquisitions alike,” said Mark Heesen, president of the NVCA. “Yet, while increased volumes remained elusive, the overall quality of exits this year was quite strong, and certainly sends a message that the market is receptive and open for business in 2013.”
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About National Venture Capital Association
Venture capitalists are committed to funding America’s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. According to a 2011 Global Insight study, venture-backed companies accounted for 12 million jobs and $3.1 trillion in revenue in the United States in 2010. As the voice of the U.S. venture capital community, the National Venture Capital Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community’s preeminent trade association, NVCA serves as the definitive resource for venture capital data and unites its nearly 400 members through a full range of professional services. For more information about the NVCA, please visit www.nvca.org.
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