Venture-Backed IPOs Show Spirited Performance This Year

Venture-backed IPO activity has been sluggish so far this year, but there are signs this could change.

Two recent issues, from Tableau Software and Marketo, received nice receptions last Friday and more potential winners are thought to be on the way.

With this in mind, peHUB decided to take a look at 18 venture-backed IPOs this year to see where the action has been. The analysis shows that companies trading above their IPO price greatly outnumber those that have sunk below it. The score is 12 above to six below.

What is interesting is that the year has been evenly divided between technology and life sciences, with life sciences issues holding a slight edge, nine issues to seven, according to data from Thomson Reuters, publisher of peHUB. Two additional issues have been cleantech companies.

That said, the record of winners in technology is strongest. Six of the seven technology offerings traded above their IPO price as of Monday’s close, including Marketo, Tableau Software, Cyan, Rally Software and Model N. Only Marin Software is below.

Life sciences companies are more evenly split, with five above and four below, the data show. One winner is Chimerix. Another is Enanta Pharmaceutical.

The cleantech companies are also evenly split, with Silver Spring Networks narrowly up and BioAmber down.

The biggest winners so far this year are Marketo, up 87% over its offer price, Tableau, up 72%, and Enanta, up 48%. Rally Software is ahead 45% and Chimerix is 43% above.

Please find a chart of the 18 IPOs with their prices and venture backers on our premium Venture Capital Journal site (for VCJ subscribers only) by clicking here.

Photo courtesy of Shutterstock.