VC-Backed IPO Upswing

The 2006 IPO market has already surpassed 2005 in terms of both volume and dollars raised, and the VC-backed IPO market is almost there as well. This isn’t to say that the public exit window is wide open, but you can certainly feel the draft of an upswing that is projected to last well into 2007.

So far in 2006, there have been 56 VC-backed companies that have priced IPOs on U.S. exchanges. This is identical to the 2005 tally, but two more VC-backed offerings – Oculus Innovative Sciences and Artes Medical – are on the pricing calendar for tomorrow. Even if just one gets through, it will be an improvement on 2005 volume. In terms of dollars raised, 2006 is easily surpassing 2005, with $5.21 billion raised compared to $4.46 billion. There also is a 36.8% increase in the aggregate post-offer value, which represents the value of all shares outstanding (primary share, management shares, etc.) at the offer date.

It’s important to note that 2006 still is well shy of the 2004 figures, in part because there hasn’t been a billion-dollar blockbuster like Google or SMIC. Instead, the largest offering has been the $531.25 million IPO from Vonage.

I compiled some data this morning using the Thomson VentureXpert database, and have posted the run here:
VC-Backed IPOs.xls

Also, it’s worth noting that the year’s largest recipient of venture capital funding –ClearWire – just re-filed for a $400 million IPO.