More on Funding and M&A and IPO Exits
With reference to IPOs and exits, TechCrunch had the following to say: So far the downward spiral of credit and financial markets seems to have left venture capital firms and startups relatively unharmed. Even though the IPO market closed completely in the second quarter (and opened again only slightly in the third), venture capital firms continue to raise money and invest in startups at a healthy pace. During the first half of the year, venture capital firms raised about $16 billion in 141 funds and invested about $15 billion in nearly 2,000 deals. and this: On top of that, the...
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Funding and Exits
Anecdotal evidence indicates that in the current environment there are a lot of "extension" rounds or bridges from existing investors. The obvious reason for this situtuation is that it is hard to attract Series B and later round money in a climate where there is as much uncertainty as there is right now. By extension rounds, I mean selling additional shares of the previous round at the same valuation as the previous round to the same players. I suspect our research will show that Series B and later round activity in the second quarter was basically flat. We wont be able to...
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IPO and M&A Exits
It will come as no surprise that the number of exits (IPO and M&A transactions) for venture financed companies is way off this year -- compared to last year. As I noted in a prior posting, Series A transactions are off year on year. Although some industries are faring well (greentech for one), on a macro level, series A deals in New England are down approximately 30% in the first six months of 2008 compared to the first six months of 2007. You can get more detail on this in our EEC Perspectives October 2008 issue. In addition, however, the...
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