Year Good, Quarter Bad
Some interesting news this morning from the NVCA and Thomson regarding venture investment last year and especially in Q4. This release coincided with a good presentation made by Stephane Dupont of the NVCA this morning at SMU’s SWVF breakfast in Dallas.
Stephane reviewed the usual 2006 trends:
- Despite the national trend towards an increase in life sciences investments, Texas lags the national average in this category
- Polarization – the larger funds are attracting increasingly greater percentages of the annual $ raise
- Exits remains at 90+% M&A, (vs. majority IPO for the 90’s) – Stephane quoted “six years of darkness” for VC IPO’s, with 157 IPO’s/y 1991-2000, and 27 IPO’s/y 2001-2006.
This morning’s NVCA/Thomson release detailed Q4 fundraising results for both VC and PE fundraising. Although total 2006 figures were up for the year, the fundraising pace slowed dramatically in Q4, down roughly 70% vs. 2005 for VC and roughly 45% for Private Equity. The implication of the news is that this is a healthy breather in the mezzanine/buyout investment class.
-John Reed
January 25th, 2007 at 6:24 pm
More on this topic:
http://vcratings.thedealblogs.com/2007/01/vc_comments_on_record_breaking.php
“VC’s Commen t on Record Breaking 2006 Investment Levels”