(http://thomsonreuters.com)
(http://www.nvca.org)
Venture-backed initial public offering (IPO) activity marked its
strongest quarter on record, by dollars raised, bolstered by the
record-breaking offering from Facebook Inc. in May. By number of
deals, 11 venture-backed companies went public in the United States
during the second quarter of 2012, a decline of 42 percent from the
first quarter of this year and down 50 percent from the second quarter
of 2011, according to the Exit Poll report by Thomson Reuters and the
National Venture Capital Association (NVCA). For the second quarter of
2012, 102 venture-backed M&A deals were reported, 27 of which had an
aggregate deal value of $5.5 billion, a 61 percent increase from the
first quarter of 2012.
"There's no question that the psychological fallout from the Facebook
IPO, coupled with economic uncertainty in Europe, put a chill on the
public markets for most of the second quarter," said Mark Heesen,
president of NVCA. "However, as the world was fixated on a single
offering, many companies were simultaneously registering
confidentially to go public under the new JOBS Act provision, building
an IPO pipeline that started to flow in the final days of June. This
backlog, coupled with an ongoing healthy acquisitions market, suggests
that 2012 can still be strong for venture-backed exits, if the public
markets stabilize and remain open fully for the rest of the year."
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M&A Deals *Total Total Average
Total with Disclosed *Average Offer IPO Offer
Quarter/ M&A Disclosed M&A Value M&A Deal **Number Amount Amount
Year Deals Values ($M) Size ($M) of IPO's ($M) ($M)
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2007 467 201 32,053.1 159.5 93 12,163.4 130.8
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2008-1 125 41 4,560.2 111.2 5 282.7 56.6
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2008-2 91 27 3,091.9 114.5 0 0.0 0.0
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2008-3 99 36 3,596.2 99.9 1 187.5 187.5
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2008-4 74 22 2,671.7 121.4 0 0.0 0.0
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2008 389 126 13,920.0 110.5 6 470.2 78.4
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2009-1 80 17 709.5 41.7 0 0.0 0.0
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2009-2 70 13 1,996.3 153.6 6 827.4 137.9
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2009-3 92 28 1,958.7 70.0 2 465.4 232.7
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2009-4 98 45 8,412.8 187.0 5 481.3 96.3
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2009 340 103 13,077.3 127.0 13 1,774.1 136.5
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2010-1 139 36 4,960.4 137.8 9 936.3 104.0
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2010-2 106 29 3,449.0 118.9 18 1,382.7 76.8
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2010-3 128 33 3,850.5 116.7 15 1,558.0 103.9
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2010-4 128 47 6,344.9 135.0 32 3,555.6 111.1
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2010 501 145 18,604.8 128.3 74 7,432.5 100.4
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2011-1 138 52 6,210.2 119.4 14 1,375.8 98.3
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2011-2 96 41 6,458.7 157.5 22 5,454.0 247.9
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2011-3 136 41 6,749.3 164.6 5 442.9 88.6
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2011-4 119 37 4,936.6 133.4 12 2,648.9 220.7
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2011 489 171 24,354.8 142.4 54 11,171.1 206.9
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2012-1 102 26 3,441.3 132.4 19 1,517.9 79.9
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2012-2 102 27 5,541.2 205.2 11 17,059.8 1550.8
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2012 204 53 8,982.5 169.5 30 18,577.7 619.3
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Source: Thomson Reuters & National Venture Capital Association
*Only accounts for deals with disclosed values
**Includes all companies with at least one U.S. VC investor that trade on
U.S. exchanges, regardless of domicile.
IPO Activity Overview
There were 11 venture-backed IPOs valued at $17.1 billion in the
second quarter of 2012, which, powered by Facebook Inc.'s $16.0
billion offering, marked the largest quarter for dollars raised by
venture-backed companies on record. By number of deals, quarterly
volume fell 42 percent from the first quarter of this year and 50
percent from the second quarter of 2011.
Nine of the 11 IPOs of the quarter were IT-related IPOs representing
82 percent of the total issues for in the quarter. By location, all of
the quarter's 11 IPOs were by U.S.-based companies with eight coming
from the state of California, two from Massachusetts and one from
Maryland.
In the largest IPO of the quarter and the largest venture-backed IPO
on record, Facebook Inc. (FB), an online social network based in Menlo
Park, California, raised $16.0 billion and began trading on NASDAQ on
May 18th.
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Q2 2012
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*Number of Total Venture-
Venture-Backed Backed Offering
Industry IPO's in the U.S. Size ($M)
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Communications and
Media 4 361.7
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Internet Specific 2 16,065.4
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Computer Software
and Services 3 501.7
--------------------------------------------------------
Information
Technology 9 16,928.8
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Biotechnology 1 81.0
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Medical/Health 1 50.0
--------------------------------------------------------
Life Sciences 2 131.0
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TOTAL 11 17,059.8
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Source: Thomson Reuters & National Venture Capital Association
*Includes all companies with at least one U.S. VC investor that trade on
U.S. exchanges, regardless of domicile
For the second quarter of 2012, eight companies listed on the NASDAQ
stock exchange and three companies listed on the New York Stock
Exchange.
Nine of the 11 companies brought to market this quarter are currently
trading above their offering price. There are 44 venture-backed
companies currently filed for an initial public offering with the SEC.
This figure does not include confidential registrations filed under
the JOBS Act.
Mergers and Acquisitions Overview
As of June 29th, 102 venture-backed M&A deals were reported for the
second quarter of 2012, 27 of which had an aggregate deal value of
$5.5 billion. The average disclosed deal value was $205.2 million, a
55 percent increase from the first quarter of 2012.
The information technology sector led the venture-backed M&A landscape
with 77 of the 102 deals of the quarter and had a disclosed total
dollar value of $2.6 billion. This was an increase of 24 percent from
the first quarter of 2012. Within this sector, Computer Software and
Services and Internet Specific deals accounted for the bulk of the
targets with 36 and 23 transactions, respectively, across these sector
subsets.
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Q2 2012
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Number of
Venture- Total
Number of Backed M&A Disclosed
Venture- deals with a Venture-
Backed M&A disclosed Backed Deal
Industry deals value Value ($M)
------------------------------------------------ ---------------------------
Computer Software
and Services 36 7 568.4
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Internet Specific 23 6 1,106.3
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Communications and
Media 10 2 143.4
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Computer Hardware 4 2 560.0
-------------------------------------------------------------
Semiconductors/Other
Elect. 4 1 206.0
-------------------------------------------------------------
Information
Technology 77 18 2,584.0
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Medical/Health 11 6 1,593.4
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Biotechnology 4 1 153.8
-------------------------------------------------------------
Life Sciences 15 7 1,747.2
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Other Products 3 1 435.0
-------------------------------------------------------------
Consumer Related 3 - -
-------------------------------------------------------------
Industrial/Energy 4 1 775.0
-------------------------------------------------------------
Non-High
Technology 10 2 1,210.0
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TOTAL 102 27 5,541.2
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Source: Thomson Reuters & National Venture Capital Association
The largest venture-backed M&A deal of the second quarter was
Amazon.com's $775 million acquisition of Kiva Systems, a North
Reading, Massachusetts-based maker of automation technology systems
for distribution centers.
Deals bringing in the top returns, those with disclosed values greater
than four times the venture investment, accounted for 52 percent of
the total disclosed transactions during second quarter of 2012, down
slightly from the first quarter of this year. Venture-backed M&A deals
returning less than the amount invested accounted for just 11 percent
of the quarterly total.
Analysis of Transaction Values versus Amount
Invested
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Relationship between transaction value and
investment Q1 12 M&A ** Q2 12 M&A**
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Deals where transaction value is less than total
venture investment 5 3
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Deals where transaction value is 1-4x total
venture investment 6 10
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Deals where transaction value is 4x-10x total
venture investment 12 5
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Deals where transaction value is greater than 10x
venture investment 3 9
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Total Disclosed Deals 26 27
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Source: Thomson Reuters & National Venture Capital Association
** Disclosed deals that do not have a disclosed total investment amount are
not included
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http://thomsonreuters.com(http://ctt.marketwire.com/?release=905401&id=1771747&type=1&url=http%3a%2f%2fthomsonreuters.com%2f).
About National Venture Capital Association
Venture capitalists are committed to funding America's most innovative
entrepreneurs, working closely with them to transform breakthrough
ideas into emerging growth companies that drive U.S. job creation and
economic growth. According to a 2011 Global Insight study,
venture-backed companies accounted for 12 million jobs and $3.1
trillion in revenue in the United States in 2010. As the voice of the
U.S. venture capital community, the National Venture Capital
Association (NVCA) empowers its members and the entrepreneurs they
fund by advocating for policies that encourage innovation and reward
long-term investment. As the venture community's preeminent trade
association, NVCA serves as the definitive resource for venture
capital data and unites its more than 400 members through a full range
of professional services. For more information about the NVCA, please
visit
www.nvca.org(http://ctt.marketwire.com/?release=905401&id=1771750&type=1&url=http%3a%2f%2fwww.nvca.org%2f).
Press Release (PDF):
http://hugin.info/142273/R/1623371/518928.PDF(http://ctt.marketwire.com/?release=905401&id=1771753&type=1&url=http%3a%2f%2fhugin.info%2f142273%2fR%2f1623371%2f518928.PDF)
