« Dr. William Murphy Jr., inventor and founder of Cordis, to talk at Creative Mornings | Main | Entrepreneurship Datebook »

Report: Best full year for venture backed IPOs since 2007

The National Venture Capital Association and Thomson Reuters issued the Q4 2013 Exit Poll Release, which tracks venture-backed M&As and IPOs. The fourth quarter marks the end of the strongest year for the number of new venture-backed IPOs since 2007.  However,  2013 ranks as the slowest year for venture-backed M&As since 2009. 

Highlights from the survey:

* Twenty-four venture-backed initial public offerings raised $5.3 billion during the fourth quarter of 2013, a slight decline from the third quarter of this year but a 91 percent increase, by dollars, compared to the previous quarter.

* The fourth quarter also marked the third consecutive quarter to see 20 or more venture-backed IPOs since the fourth quarter of 2004.

* During full year 2013, 82 venture-backed companies went public in the United States, marking the strongest full year total for the number of new venture-backed listings since 2007.

.* Led by the internet specific sector, 10 of the 24 offerings during the quarter were information technology IPOs representing three-quarters of total proceeds raised in the fourth quarter.

* With six biotechnology offerings in the fourth quarter, this marks the third consecutive quarter for double-digit listings in the life sciences sector since the fourth quarter of 2000.

* By location, 18 of the quarter’s 24 IPOs were from U.S.-based companies. Criteo SA, a Paris, France-based internet marketing firm, raised $288.1 million on the NASDAQ stock exchange on Oct. 29, the largest non-US offering of the quarter.

* In the largest IPO of the quarter, Twitter (TWTR) raised $2.1 billion and began trading on the New York Stock Exchange on Nov. 6. The company is currently trading more than twice its $26 offering price.

* For the fourth quarter of 2013, 81 venture-backed M&A deals were reported, 31 of which had an aggregate deal value of $5.3 billion. This represents a nine percent increase in disclosed value from the third quarter and marks the strongest quarter for M&A disclosed value since the third quarter of 2012.

* With 377 acquisitions of venture-backed companies during the year, full year 2013 ranks as the slowest year for venture-backed M&A since 2009.

* The largest venture-backed M&A transaction during the fourth quarter was Monsanto’s $930 million purchase of Climate Corp, a San Francisco, Calif.-based provider of weather risk technology services. eBay’s $800 million acquisition of Chicago, Illinois-based Braintree Payment Solutions ranked as the second largest venture-backed M&A deal during the quarter.

 “IPO activity for venture-backed companies continues to improve. The biotech sector is especially notable because it made up over half of the 2013 IPOs, which is more than the previous five years combined,” said John Taylor, head of research for the National Venture Capital Association, in the press release. “The on-ramp provision of the JOBS Act is likely a significant contributor to this shift and the venture industry overall remains hopeful that IPO and M&A levels will further strengthen as the bulging pipeline of mature companies awaits favorable market conditions.”