Venture-backed IPOs show rebound as M&A slips
NEW YORK (Reuters) - Venture-backed initial public offerings are the highest since before the financial crisis, even as venture-backed M&A activity is slipping, according to a survey by Thomson Reuters and the National Venture Capital Association.
IPOs have always been a key exit strategy for venture capital funds, a path that was essentially closed off by the moribund stock market in much of 2008 and early 2009.
The number of venture-backed IPOs in the second quarter is the highest it has been since the fourth quarter of 2007, according to the survey. There were 17 venture-backed IPOs worth $1.3 billion in the second quarter, which was the third consecutive quarterly increase in volume and the second in dollar amount.
Electric carmaker Tesla Motors Inc (TSLA.O), which raised $226 million, was the largest deal of the quarter and rose more than 40 percent in its debut.
But there are still signs of uncertainty. Only five of the 17 IPOs in the second quarter were trading at or above their IPO prices at the close of markets on Wednesday and the deal flow is still far below historic highs. There were 86 venture- backed IPOs worth $10.33 billion in the fourth quarter of 2007, the most recent peak in the venture-backed IPO market.
Google Inc's (GOOG.O) acquisition of AdMob Inc for $750 million was the largest of the 92 venture-backed M&A deals in the second quarter. The second quarter represented a fall-off in both volume and dollar value from the first quarter.
NEW YORK, March 8 (Reuters-peHUB) - The auction of JP Morgan Chase's private equity business, One Equity Partners, in the market since at least November, has hit an impasse, according to three people with knowledge of the situation.
- U.S. small businesses borrowed more money in January than they did a year earlier, signaling continued growth in the economy despite a spate of cold weather that has been blamed for weakness in many other indicators of activity.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.