Venture capital-backed IPOs reach two-year low

Mon Oct 3, 2011 12:30pm EDT

* Five companies go public in third quarter

* Dealmaking activity rises

Oct 3 (Reuters) - Just five venture-capital backed companies held initial public offerings last quarter, data from the National Venture Capital Association and Thomson Reuters shows, marking the worst showing since late 2009.

In dollar terms, the offer amount of the IPOs was $442.9 million, again, the worst showing since the end of 2009.

Meanwhile, some 101 venture-backed companies were bought, with 35 disclosing deal terms. That represents the highest dollar amount of deals with disclosed terms since the fourth quarter of 2009, showing that exits are still available for good companies.

In the largest IPO of the quarter, Chinese holding company Tudou TUDO.O raised $174 million on the Nasdaq stock market in August. Three of the five IPOs -- real-estate service Zillow (Z.O), telecommunications software company Tangoe (TNGO.O) and online-backup service Carbonite <CARB.O > -- were trading above their offer price as of Friday.

In the biggest disclosed deal of the quarter, Tulsa, Oklahoma-based Laredo Petroleum bought Dallas-based Broad Oak Energy for $1 billion. (Reporting by Sarah McBride in San Francisco. Editing by Robert MacMillan)