Q2 2011 IPO and M&A Report
Jul 16, 2011 Tweet
The 2nd Quarter was a bright spot in an otherwise stuck-in-the-doldrums economy as 22 venture-backed companies opened with IPOs for a total value of $5.5 billion, according to the National Venture Capital Association (NVCA). Q2 was the strongest quarter in dollar value since Q3 2001.
M&A value was not quite as healthy, which could possibly be attributed to preference of companies for the higher valuations available in a healthy IPO market.
The largest IPO of the quarter was for Russian Internet provider Yandex (YNDX), which raised $1.3 billion. Yandex’s IPO was the second largest internet IPO since Google’s $1.7 billion offering in 2004. While NVCA President, Mark Heesen, is expecting an increase in the number of venture-backed exits in the second half of this year, he is concerned about the US debt limit effect on capital markets and corporate M&A activity.
My question is when will the increased volume of venture-backed exits and the liquidity provided by those exits translate to pre-bubble capital availability for startups.

