TOKYO - The Bank of Japan kept policy steady on Wednesday despite concerns over recent volatility in bond market, saying growth is starting to pick up even as risks loomed from an uncertain global outlook.
LONDON - From ketchup to hot drinks, family-run investment firms are shaking up the consumer deals market, squeezing out private equity players and forcing them to change strategy.
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.
IPOs, acquisitions of venture-backed companies fizzled in 2012
SAN FRANCISCO |
SAN FRANCISCO (Reuters) - Venture-backed companies made less cash for their backers last quarter compared with a year ago, capping a year in which the industry came under fire for not delivering hoped-for returns.
Acquisitions of venture-backed companies totaled $3.52 billion in the fourth quarter, down 29 percent from $4.99 billion a year earlier, according to data from Thomson Reuters and the National Venture Capital Association.
For the full year, acquisitions totaled $21.5 billion, down 11 percent from $24.09 billion in 2011. The numbers reflect only companies that disclosed deal values.
Venture-backed companies tapping public markets raised $1.41 billion via initial public offerings in the fourth quarter, down 50 percent from $2.8 billion a year earlier, when gaming company Zynga (ZNGA.O) raised $1 billion in its IPO.
For the full year, venture-backed IPOs totaled $21.45 billion, doubling from $10.69 billion in 2011. But strip away the $16 billion that social-networking company Facebook (FB.O) raised in May and the total actually halved.
The numbers highlight a system that relies on the success of just a handful of high-profile companies. Meanwhile, the vast majority of venture-backed companies delivered fairly moderate returns.
Eight venture-backed companies held IPOs last quarter, compared with 11 a year earlier. About 95 companies were acquired, compared with 122 a year earlier.
The biggest acquisition of the quarter was Cisco Systems' (CSCO.O) $1.2 billion purchase of wireless-networks company Meraki. The largest IPO of the quarter was human-resources software company Workday (WDAY.N), which raised $733 million.
The venture industry has been targeted by criticism that the returns it offers do not justify the years - typically a decade or more - it requires investors to tie up their cash.
In May, the Ewing Marion Kauffman Foundation released a widely read report on venture investing called "We Have Met the Enemy... And He is Us." It slammed the industry for poor returns and business practices, particularly funds that total $500 million or more.
(Reporting by Sarah McBride; Editing by Dan Grebler)
- Tweet this
- Share this
- Digg this