The Death of Venture-Backed IPOs

[Heard]While most people understand by now that venture-backed initial public offerings have tumbled since the late 1990s, what most people don’t realize is that we’re also well below pre- tech-boom levels, as this figure from today’s Wall Street Journal shows:

Venture-capital firms, which invest in young businesses in hopes of
profiting when they go public or are acquired by other companies, are
awash in cash for investments these days, but the trend toward fewer
IPOs also is crimping their returns. Though some venture-backed firms
have fetched lofty prices from acquirers — eBay
Inc. last year paid $2.5 billion for Internet-phone firm Skype
Technologies SA — IPOs traditionally have been more lucrative. And the
longer venture capitalists hold investments, the more money they tend
to sink into them, potentially lowering returns.

Related posts:

  1. Expensive CEOs at Venture-backed Companies
  2. SarbOx & The Trouble with IPOs
  3. IPO Market is Squishy
  4. The LP Traffic Jam at Top-Tier Venture Firms
  5. Shotguns, Rifles, & the Death of Geography in Venture Capital