Arlington, Va. - For the first time since 1978, there were no venture-backed initial public offerings (IPOs) during the second quarter, according to a new report from the National Venture Capital Association (NVCA).

The absence of IPOs follows an exceptionally slow first quarter, in which just five venture-backed companies went public.

In the first half of 2007, 43 companies went public.

The NVCA characterized the trend as a "capital markets crisis" for the start-up community.

"Venture-backed companies that successfully enter the public markets represent a critical job creation engine for the U.S. economy, and that engine has completely shut down," said Mark Heesen, president of the NVCA.

"We need to put regulators, legislators, presidential candidates, and the private sector on notice that this situation represents a serious problem that will have long reaching economic implications if not addressed."

According to Dow Jones VentureSource, 10 companies have withdrawn their IPO registrations since March.

Related Links:
http://biz.yahoo.com/prnews/080701/netu048.html?.v=61

http://www.nvca.org/pdf/Q2_08_Exits_Release.pdf (PDF)