Venture Capital IPO Report For Technology Companies Based In The United States – 2012,1st Half

During the first half of calendar year 2012, 30 venture capital-backed U.S. technology companies went public, raising a total of $18.6 billion in gross offering proceeds. This compares quite positively to the $2.19 billion raised during the second half of 2011. $16 billion of the difference was attributable to one oversized deal, the Facebook IPO. Stripping out that large transaction from the aggregate dollar amount, the IPO market showed a sequential increase of 18%.

Eight Digital Media and Internet venture-backed companies had IPOs garnering $16.7 billion total consideration. 11 Software, Financial Services, IT and Mobile companies secured $1.1 billion during the period. 5 life science companies went public, raising $331 million in gross proceeds. 6 companies in the remaining industries of Electronics, Alternative Energy, Manufacturing and Networking raised $468 million.

With respect to pricing, of the 30 total IPOs, 15 priced above their expected range. 3 priced within the expected original or revised range and the remaining 12 companies priced below the original range sought. There was a much higher percentage of companies pricing their offerings either above or below their range and relatively few within their original expectations, suggesting significant pricing volatility. Also, as of 7.31.2012, 22 of 30 (73%) IPO share prices were higher than their initial flotation price, little improved when compared to 69% of positive IPOs in the second half of 2011.



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