Professional Documents
Culture Documents
200
152
50
128
119
40
101
30
20
27
27
2008
2009
150
88
100
50
10
0
0
2010
2011
2012
2013
2014 YTD*
Source: Thomson One; Note **Excludes figures from East Asia; *Includes figures till July 2014
+63%
160
140
+49%
120
100
80
Jun-11
Dec-11
Jun-12
Dec-12
S&P 500
Jun-13
FTSE Nasdaq 500
Dec-13
Jun-14
P a g e |1
VC-backed
IPOs on the Rise
s
November 2014
The first half of 2014 witnessed PE- and VC-backed IPOs contributing 64% to the total US IPOs by volume and 81% by capital raised.
Total VC-backed IPOs stood at 38 in 1Q 2014, followed by 25 in 2Q 2014. The top three VC-backed IPOs in the US during 2Q 2014
were from the technology and healthcare sectors.
US VC-backed IPOs:
38
10
8
25
20
6
4
14
11
20
12
10
40
25
30
20
20
10
4Q12
1Q13
10
2
0
0
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
2Q13
3Q13
4Q13
1Q14
2Q14
The outlook for the rest of 2014 continues to remain positive, backed by low volatility in equity markets, strong investor confidence, and
the success of Alibabas IPO listing. This is expected to pave the way for a buoyed equity market and improved investor sentiment
which is likely to result in higher IPO activity in 4Q 2014.
40
29
27
24
3
15
17
15
12
20
12
4
30
11
10
2Q13
3Q13
0
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
4Q13
1Q14
2Q14
P a g e |2
VC-backed
IPOs on the Rise
s
November 2014
120
100
80
60
Jul-11
Dec-11
May-12
Oct-12
FTSE100
Mar-13
DAX30
Aug-13
Jan-14
Jun-14
CAC40
Europe witnessed eight IPOs in 1Q 2014, which was the highest number of VC-backed IPOs in a quarter since 2Q 2010. The second
quarter recorded strong growth with 19 IPOs, reflecting the highest number of VC-backed IPOs in a quarter since 4Q 2006.The first
seven months of 2014 witnessed a significant jump in amount raised from VC-backed IPOs, the highest in the past six years
USD3.7bn through 31 IPOs. Some of the notable offerings during the year include UK-based Just Eat PLC raising USD597.4mn in April
2014 and Circassia Pharmaceuticals PLC raising about USD333.5mn in March 2014.
6
5
15
4
3
20
9
7
6
3
5
3
2Q13
3Q13
10
5
0
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
4Q13
1Q14
2Q14
Conclusion
The improving global economic outlook and positive regulatory developments in US and China to create a more conducive capital
markets are among the major factors contributing to the growth of VC-backed companies taking IPO exit route. Also, the positive
momentum in the equity markets post the 2008 financial crisis has encouraged the VC-backed companies to tap IPO as a viable exit
option against acquisitions and buyout routes. Amid these contributing factors, capital markets globally are likely to witness a robust
pipeline of IPOs by VC-backed companies.
P a g e |3
VC-backed
IPOs on the Rise
s
November 2014
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