Science & Enterprise subscription

Follow us on Twitter

  • A company using image analysis and deep learning to discover therapies for diseases often considered difficult to t… https://t.co/rnoQVhLISa
    about 22 mins ago
  • New post on Science and Enterprise: A.I. Discovery Company Raises $123M in Venture Funds https://t.co/2gXLZgLu0f #Science #Business
    about 25 mins ago
  • A clinical trial is underway assessing a drug approved for a rare inherited disease as a treatment for people hospi… https://t.co/Jyaa0PlA4A
    about 7 hours ago
  • New post on Science and Enterprise: Trial Testing Rare Disease Drug for Covid-19 Pneumonia https://t.co/2hAsoiN16x #Science #Business
    about 7 hours ago
  • Discoveries in a university lab that enable detection of Covid-19 infections from a person's breath are being licen… https://t.co/DgmvR2EcTr
    about 23 hours ago

Please share Science & Enterprise

IPOs, Mergers for Venture-Funded Companies Gain in 2010

Calculator keys (Investor.gov)

(Investor.gov)

The number and value of exit deals — where enterprises backed by venture capital (VC) become financially self-sustaining — increased sharply in 2010, compared to 2009.  The compilation by Dow Jones VentureSource shows 514 exit deals took place in 2010 a 25 percent increase, with those deals netting $39.3 billion, a jump of 72 percent compared to 2009.

Both annual numbers for 2010 are still down, however, compared to pre-recession levels. In 2007, VC-backed companies recorded 613 deals, bringing in $69.1 billion.

The numbers of both main types of exit deals — initial public offerings (IPOs) and mergers & acquisitions (M&As) — increased in 2010. The 46 IPOs in 2010 represent more than a five-fold increase over the 8 IPOs in 2009. IPOs in 2010 brought in $3.4 billion compared to $903 million in 2009.

In 2010, 445 M&A transactions took place, a 17 percent increase, raising nearly $34 billion, a gain of 62 percent compared to 2009. While it took a little less time in 2010 for a VC-backed company to achieve liquidity through an M&A deal in 2010 — median of 5.2 years in 2010 compared to 5.5 years in 2009 — it took somewhat longer to get liquidity through an IPO. It took enterprises backed by VCs a median time of 8.1 years in 2010, up from 7.9 years in 2009.

Related: VC Mergers/Acquisitions Rebound, IPOs Drop in Q3 2010

*     *     *

5 comments to IPOs, Mergers for Venture-Funded Companies Gain in 2010