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Report: Venture-Backed Exits Continue Slow Pace in Q3

Authored by Mark Hefflinger on October 6, 2009 - 9:16am.
Arlington, Va. - Venture-backed company exit activity showed little signs of life during the third quarter and fell far short of historical norms, according to a new report by Thomson Reuters and the National Venture Capital Association (NVCA).

There were three venture-backed IPOs in the quarter, as well as 62 M&A exits totaling $1.2 billion, with the average value of those deals falling back to first-quarter levels.

"The fact that the many in the media are classifying three IPO's as resurgence is evidence of how low our expectations have become," said Mark Heesen, president of the NVCA.

"While we are encouraged by the success of the companies that have gone public, their performance has yet to translate into a filling of the pipeline. On the acquisitions side, both volume and average disclosed value declined in the third quarter which is not the direction we hoped to see."

Heesen said that his organization's earlier forecast of a true recovery not beginning until 2010 "still unfortunately holds true."

 

Related Links:
http://snipurl.com/sd6a7 (PDF)

http://www.nvca.org

Published in DMW Daily, October 6, 2009
tags: Deals | VC | Reports | Acquisitions | Research | Investments | National Venture Capital Association | Thomson Reuters |



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