Q2 2011 IPO and M&A Report

July 16, 2011

10:00 am

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.


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Glen Hellman (@glehel), is an angel investor, serial entrepreneur, and works for venture capitalists as a turn-around specialist. He is the Chief Entrepreneureator at Driven Forward LLC, frequently muses on his blog, Forward Thinking, and works with entrepreneurs to help them figure out what to do and get them to do it.

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