* Ten venture-backed IPOs raised $1.09 billion
* M&A deal volume totaled $7.6 billion for venture-backed
* "Fiscal cliff" creates uncertainty for current quarter
By Sarah McBride
SAN FRANCISCO, Oct 2 The value of venture-backed
initial public offerings and acquisitions grew slightly in the
third quarter from a year ago, but political factors could
weaken the current-quarter outlook, the National Venture Capital
Last quarter, 10 venture-backed companies raised a total of
$1.09 billion through IPOs, up from five companies and $475.9
million a year earlier, according to data from Thomson Reuters
and the NVCA released on Tuesday.
Ninety-six companies entered into merger & acquisitions,
mostly as the target company, but in some cases as the acquirer.
Terms were disclosed for 30 deals totaling $7.6 billion. In the
2011 third quarter, there were 145 deals, including 45 with
disclosed values totaling $7.15 billion.
But a marked slowdown could occur in the current quarter
because of uncertainty over the "fiscal cliff," said NVCA
President Mark Heesen, referring to automatic spending cuts and
tax changes that kick in next year if Congress does not act to
Three billion-dollar venture-backed M&A deals closed in the
third quarter: VMWare's $1.26 billion purchase of
network virtualization company Nicira Networks, Microsoft Corp's
$1.2 billion acquisition of business software company
Yammer, and Facebook Inc's $1 billion purchase of
photo-sharing service Instagram.
In the largest venture-backed IPO of last quarter, firewall
vendor Palo Alto Networks raised $260 million. Of the
10 IPOs, supply-chain platform company E2open's stock
is the only one trading below its debut price, of $15 in July,
at around $14.
Twenty-eight venture-backed companies have filed for future
IPOs, excluding those that filed confidentially using Jobs Act
provisions, the NVCA report said.