Venture-backed IPOs maintain steady clip in second quarter

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Venture-funded IPO activity continued at a good clip in the second quarter, only partly restrained by the NASDAQ downturn of March and April.

Twenty-eight venture funded companies floated public stock in the quarter, a 24 percent decline from the first quarter, according to a report from the National Venture Capital Association and peHUB publisher Thomson Reuters. The value of the deals rose 45 percent to $4.9 billion.

The quarter was the fifth in a row with more than 20 offerings and was led by activity in the life sciences markets. Sixteen deals were from life sciences companies, compared with 10 that were from information technology startups, the report found. The quarter was also the fifth in a row with more life sciences deals than IT deals.

Four of the quarter’s offerings were from China, including the largest: JD.com, an online shopping site that raised $2 billion.

Fifty-one additional venture-backed companies remain publicly filed for offerings with the Securities and Exchange Commission and several hundred have submitted draft registrations privately.

Acquisition activity in the quarter pulled back from the first quarter. Ninety-seven deals took place with 33 disclosing deal value. Aggregate deal value was the smallest in five quarters. The largest deal in the quarter was Intuit’s $360 million purchase of Check Inc of Palo Alto, California.

The majority of deals – 79 – were information technology transactions.

Photo courtesy of Shutterstock.

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