« French VC-Backed Boonty Acquires China's Gamehub | Main | Neuf Cegetel IPO Bouyant »
October 25, 2006
Euro VC-Backed IPOs Still Outpacing US Says VentureOne
VentureOne published its latest European liquidity report card today. VC backed firms in Europe have raised €441M in 56 IPOs. Here's what was announced...
With 14 initial public offerings occurring in the third quarter of 2006, the level of IPO activity for European venture-backed companies continues to outpace that of their U.S. counterparts, according to the European Liquidity Report from Dow Jones VentureOne [the publisher of the VentureSource database.]
So far this year the IPO figures are ahead of 2004, when €368M was raised by VC-backed companies. It is not clear yet whether the final quarter will enable 2006 to outpunch 2005 when €627M was raised.
Reading on, the good news is that VC-backed firms continue to be able to raise money on the capital markets, especially entrepreneurial firms who are tapping AIM, Alternext and Entry Standard, Europe's various junior market. The bad news, at least for VCs, is that the IPOs are not exactly giving them exits.
Stephen Harmston, director of global research for VentureOne in London said:
“In fact, these IPOs are serving more as another capital raising option for start-up companies in Europe, rather than as true exits from their investors’ portfolios.”
Without those exits, VCs are typically reluctant to make new investments in early stage firms and it will be difficult to do uprounds, we guess too.
Read- VENTURE-BACKED EUROPEAN IPOS SLOW BUT CONTINUE TO OUTPACE U.S. IPO ACTIVITY IN THIRD QUARTER OF 2006 (press rel.)
Posted on October 25, 2006 01:21 PM | Posted to News And Updates | Permalink
Trackback Pings
TrackBack URL for this entry:
http://www.thealarmclock.com/mt/mt-tb.cgi/2298
