In 1980 Genentech became the first
IPO of a venture funded biotech company.
Not exact matches
Those are the sorts
of numbers that likely could have helped the company price an
IPO rather than take big new
venture funding, but Berke suggests that the company wants to be stronger (both in terms
of product and balance sheet) before possibly heading out into the public markets.
According to figures that the National
Venture Capital Association diligently collects through primary research and publishes on their Web site, last year was somewhat typical in that 1,334 start - ups got
funded, but only 13 % as many achieved an
IPO (81 last year) or an acquisition large enough to warrant a public disclosure
of the price (95 last year).
White Paper by Roland Reynolds & Ken Wallace September 2009 INTRODUCTION Two key trends have dramatically altered the
venture capital industry over the last three decades: the rise
of larger
fund sizes and the decline
of Initial Public Offerings (
IPOs) as an exit market for
venture - backed companies.
According to Dow Jones,
of the over 6,600 U.S. - based companies initially
funded by
venture capital from 2006 and 2011, 84 % are currently independently operated, 11 % were acquired or had an
IPO, and 4 % went out
of business.
And then, if you think about an ICO [initial coin offering] being the social equivalent to an
IPO [initial public offering], a lot
of smaller companies don't go to VCs [
venture capitalists] to get
funding.
IPOs serve several purposes: it gives companies a way to raise money to
fund their growth and it allows founders and
venture capitalists the opportunity to cash in a portion
of their investment.
The cost
of raising
venture capital
funds or holding an
IPO was a very expensive process, but an ICO opens a company to investment
funding from the public without having to lose the huge percentage or pay the substantial associated fees.
«There's been a recent concern over valuation and a lack
of IPOs, and the
venture capitalists who
funded it all are now sitting back and taking a hard look at growth projections,» Georgules says.