Venture firms completed 131 exits totaling $6.7 billion in Q3 2013, according to the latest venture capital data from PitchBook Data. Liquidity activity in terms of capital is significantly lower than the same period a year ago -in Q3 2012, VC firms completed 148 exits for $9 billion, a cash flow drop of 34%.
According to the latest venture capital data from PitchBook Data, Inc., venture firms completed 131 exits totaling $6.7 billion in 3Q 2013. Liquidity activity in terms of capital is significantly lower than the same period a year ago: In 3Q 2012, VC firms completed 148 exits for $9 billion, a cash flow drop of 34%.
PitchBook’s Key Insight:
Though venture capital exit counts and capital values are down, venture capital firms are enjoying better returns on the investments that they have realized. The median exit size for venture capital-backed portfolio companies rose from $55 million in 3Q 2012 to $82 million in 3Q 2013, and more than a few companies experienced exit valuation step-ups of more than 100% this quarter.
“A venture firm can often realize an increase in their portfolio company’s valuation from last venture financing to exit, also known as a step-up,” said John Gabbert, CEO & Founder of PitchBook. “VC firms’ exit returns appear to be increasingly successful, even though exit counts and capital are down. This quarter there were several VC-backed companies with exit step-ups of over 100%.”
Other insights from PitchBook:
• Twenty companies went public in 3Q for a total of $1.9 billion, down slightly from the 24 IPOs in the previous quarter (2Q 2013).
• The top three VC exiters for the quarter include SV Angel, Khosla Ventures and Y Combinator.
• There were 112 acquisitions of venture-backed companies in 3Q, totaling $5 billion.
• The median acquisition size increased almost 150% from 3Q 2012 to 3Q 2013, $36 million to $82 million.
• Locu, acquired by The Go Daddy Group, had the largest exit valuation step-up in 3Q. Their Series A valuation of $11.7 million in April 2012 jumped 495% to a $70 million exit valuation.
For further venture capital liquidity insights from 3Q 2013, be sure to check out the infographic above.
About PitchBook Data
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