Venture Exits Rise in 2007

In 2007, 86 venture-backed IPOs raised a total of $10.3 billion, up from 57 IPOs raising $5.1 billion last year, according to Thomson Venture Economics and the NVCA.  Of this total, there were 47 Information Technology, raising $6 billion in 2007.

As of December 31, 2007, 58% of those IPOs were trading at or above offering price. 

The value of M&A deals rose significantly.  There were 304 deals disclosed in 2007 worth $23.7 billion, compared to 363 deals worth $17.1 billion last year.  Average disclosed deal size jumped to $176 million, compared to $111 million last year.

All of this occurred despite the volatility in the public markets associated with the credit crunch.  IPO activity fell off in December, but we view that as more a sign of investor fatigue than of a lack of demand for technology IPOs.  In 2008, we believe public market investors will continue to pay a premium for growth.