Venture Exit Values Rising Despite Credit Crunch

In Q3 2007, 12 venture-backed IPOs raised a total of $945 million, up from 8 IPOs raising $935 million last year, according to Thomson Venture Economics and the NVCA.

The value of M&A deals rose significantly. There were 34 deals disclosed in Q3 2007 worth $7.7 billion, up from 41 deals worth $3.8 million last year. Average disclosed deal size jumped to $226 million, compared to $92 million last year.

According to VentureOne, which included estimates for deals not disclosed, the total was $10.9 billion from 90 deals. This suggests an average of $121 million per deal. The median amount of capital raised before acquisition was $21 million.

All of this occurred despite the volatility in the public markets associated with the credit crunch. We believe both corporations and public market investors will continue to pay a premium for growth.