With Biotechnology Companies Leading the Way, Six Venture-Backed IPOs Recorded in First Quarter
(Thomson Reuters ONE) -
CONTACTS
Ben Veghte
NVCA
1.202.864.5923
bveghte(at)nvca.org
Ilya Hemlin
Thomson Reuters
1.646.223.5532
ilya.hemlin(at)thomsonreuters.com
New York, New York, April 4, 2016 - Six venture-backed initial public offerings
(IPOs) raised $574.5 million in the first quarter of 2016, according to the Exit
Poll Report by Thomson Reuters and the National Venture Capital Association
(NVCA). This marks the slowest quarter for venture-backed IPOs since the third
quarter of 2011. By merger and acquisition (M&A), seventy-nine venture-backed
M&A deals were reported in the first quarter, 20 of which reported an aggregate
deal value of $4.8 billion.
"A strong IPO market requires a stable market for public stocks. Due to a
sustained period of turbulence in the public markets at the start of the year
combined with non-traditional investors making direct investments into later-
stage startups, venture-backed IPO activity in the first quarter was nearly non-
existent," said Bobby Franklin, President and CEO of NVCA. "Despite the
successes of a handful of venture-backed biotechnology companies making IPOs,
the IPO window for venture-backed companies from other sectors has been
completely shut. While this may cause some to panic, venture capital is a long-
game business and seasoned venture investors have lived through these slowdowns
before. As they wait for the IPO window to open again, venture investors are
keeping calm and carrying on, focusing their attention on growing and
maintaining their portfolios of the next generation of great American
companies."
+------------+-------+----------+----------+--------+--------+---------+-------+
| | | | | | | |Average|
| | |M&A Deals | *Total |*Average| | Total | IPO |
| |Total | with |Disclosed |M&A Deal| | Offer | Offer |
| | M&A |Disclosed |M&A Value | Size |**Number| Amount |Amount |
|Quarter/Year| Deals | Values | ($M) | ($M) |of IPO's| ($M) | ($M) |
+------------+-------+----------+----------+--------+--------+---------+-------+
|2010 | 545 | 152 | 17,733.47| 116.67| 67 | 8,069.61| 120.44|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2011-1 | 138 | 51 | 5,966.84| 117.00| 14 | 1,526.93| 109.07|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2011-2 | 97 | 38 | 6,306.30| 165.96| 20 | 5,635.10| 281.75|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2011-3 | 142 | 43 | 6,934.46| 161.27| 5 | 475.86| 95.17|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2011-4 | 124 | 38 | 4,989.62| 131.31| 11 | 2,803.24| 254.84|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2011 | 501 | 170 | 24,197.22| 142.34| 50 |10,441.11| 208.82|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2012-1 | 115 | 29 | 3,813.50| 131.50| 19 | 1,682.84| 88.57|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2012-2 | 124 | 34 | 6,304.44| 185.42| 12 |17,227.92|1435.66|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2012-3 | 124 | 38 | 8,687.62| 228.62| 10 | 1,140.73| 114.07|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2012-4 | 129 | 32 | 4,031.09| 125.97| 7 | 1,302.65| 186.09|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2012 | 492 | 133 | 22,836.65| 171.70| 48 |21,354.14| 444.88|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2013-1 | 85 | 11 | 1,019.30| 92.66| 8 | 716.87| 89.61|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2013-2 | 98 | 20 | 4,375.74| 218.79| 22 | 2,249.88| 102.27|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2013-3 | 116 | 30 | 4,856.67| 161.89| 27 | 2,781.40| 103.01|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2013-4 | 96 | 34 | 6,662.50| 195.96| 24 | 5,320.08| 221.67|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2013 | 395 | 95 | 16,914.21| 178.04| 81 |11,068.22| 136.64|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2014-1 | 116 | 31 | 7,619.97| 245.81| 37 | 3,404.52| 92.01|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2014-2 | 120 | 39 | 4,142.52| 106.22| 29 | 5,039.87| 173.79|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2014-3 | 136 | 36 | 8,590.17| 238.62| 24 | 2,704.29| 112.68|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2014-4 | 113 | 34 | 27,787.28| 817.27| 27 | 4,363.45| 161.61|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2014 | 485 | 140 | 48,139.95| 343.86| 117 |15,512.13| 132.58|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2015-1 | 97 | 18 | 2,181.71| 121.21| 17 | 1,437.22| 84.54|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2015-2 | 79 | 15 | 4,187.51| 279.17| 29 | 3,798.85| 130.99|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2015-3 | 111 | 27 | 6,883.37| 254.94| 15 | 1,903.75| 126.92|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2015-4 | 105 | 30 | 4,255.88| 141.86| 16 | 2,239.11| 139.94|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2015 | 392 | 90 | 17,508.47| 194.54| 77 | 9,378.92| 121.80|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2016-1 | 79 | 20 | 4,782.19| 239.11| 6 | 574.49| 95.75|
+------------+-------+----------+----------+--------+--------+---------+-------+
|2016 | 79 | 20 | 4,782.19| 239.11| 6 | 574.49| 95.75|
+------------+-------+----------+----------+--------+--------+---------+-------+
Source: Thomson Reuters & National Venture Capital Association
* Only accounts for deals with disclosed values
**Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile
IPO Activity Overview
There were six venture-backed IPOs valued at $574.5 million in the first quarter
of 2016. By number of deals, quarterly volume fell 65 percent compared to the
first quarter of 2015 and registered similar declines by dollars raised. The
first quarter of 2016 marks the slowest quarter for venture-backed IPOs since
the third quarter of 2011, when five companies raised $475.9 million.
Led by biotechnology companies, all six of this quarter's offerings were life
sciences IPOs. The first quarter of 2016 marks the first time that no venture-
backed technology companies listed publicly since the first quarter of 2009,
which marked the second consecutive quarter without a U.S. venture-backed
listing in any industry.
By location, five of the quarter's six IPOs were from U.S.-based companies. The
largest U.S. offering of the quarter, Cambridge, Massachusetts-based Editas
Medicine (EDIT) raised $108.6 million on the NASDAQ stock exchange on February
2(nd).
In the largest IPO of the quarter, Beijing, China-based BeiGene Ltd (BGNE),
raised $182.2 million and began trading on the NASDAQ stock exchange on February
2(nd). At the end of the first quarter, the company traded 22 percent above its
$24 offering price.
+----------------------------+-------------------------------------------------+
| | Q1 2016 |
+----------------------------+------------------------+------------------------+
| | *Number of Venture- | Total Venture-Backed |
| Industry |Backed IPO's in the U.S.| Offering Size ($M) |
+-------------+--------------+------------------------+------------------------+
| |Biotechnology | 5 | 392.33|
|Life Sciences+--------------+------------------------+------------------------+
| |Medical/Health| 1 | 182.16|
+-------------+--------------+------------------------+------------------------+
| | | 6 | 574.49|
+-------------+--------------+------------------------+------------------------+
| TOTAL| 6 | 574.49|
+----------------------------+------------------------+------------------------+
Source: Thomson Reuters & National Venture Capital Association
*Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile
All six venture-backed companies listed on the NASDAQ stock exchange during the
first quarter of 2016.
Five of the six companies brought to market in the first quarter are currently
trading at or above their offering price. There are 43 venture-backed companies
currently registered publicly for an IPO with the SEC. This figure does not
include confidential registrations filed under the JOBS Act, where many
observers believe the majority of venture-backed companies now file.
Mergers and Acquisitions Overview
As of March 31(st), 79 venture-backed M&A deals were reported for the first
quarter of 2016, 20 of which had an aggregate deal value of $4.8 billion, a 19
percent decline compared to the overall number of deals reported during the
first quarter of 2015, but double the disclosed M&A value registered a year ago.
The information technology sector led the venture-backed M&A landscape with 57
of the 79 deals of the quarter and had a disclosed total dollar value of $3.8
billion. Within this sector, computer software and services and internet
specific deals accounted for the bulk of the targets with 33 and 12
transactions, respectively.
+----------------------------------------+-------------------------------------+
| | Q1 2016 |
+----------------------------------------+-----------+------------+------------+
| | | Number of | |
| | | Venture- | Total |
| | Number of |Backed M&A | Disclosed |
| | Venture- |deals with a| Venture- |
| |Backed M&A | disclosed |Backed Deal|
| Industry | deals | value | Value ($M) |
+---------------+------------------------+-----------+------------+------------+
| |Computer Software and | 33 | 3 | 456.80|
| |Services | | | |
| +------------------------+-----------+------------+------------+
| |Internet Specific | 12 | 3 | 592.20|
| +------------------------+-----------+------------+------------+
| |Computer Hardware | 6 | 4 | 2,315.63|
| +------------------------+-----------+------------+------------+
| |Communications and Media| 4 | 1 | 350.00|
| +------------------------+-----------+------------+------------+
| |Semiconductors/Other | 2 | 1 | 100.00|
| |Elect. | | | |
| Information +------------------------+-----------+------------+------------+
| Technology | | 57 | 12 | 3,814.63|
+---------------+------------------------+-----------+------------+------------+
| |Medical/Health | 11 | 2 | 395.00|
| +------------------------+-----------+------------+------------+
| |Biotechnology | 7 | 4 | 485.56|
| +------------------------+-----------+------------+------------+
| Life Sciences | | 18 | 6 | 880.56|
+---------------+------------------------+-----------+------------+------------+
| |Industrial/Energy | 2 | 2 | 87.00|
| +------------------------+-----------+------------+------------+
| |Consumer Related | 1 | 0 | 0.00|
| +------------------------+-----------+------------+------------+
| |Other Products | 1 | 0 | 0.00|
| Non-High +------------------------+-----------+------------+------------+
| Technology | | 4 | 2 | 87.00|
+---------------+------------------------+-----------+------------+------------+
| TOTAL| 79 | 20 | 4,782.19|
+----------------------------------------+-----------+------------+------------+
Source: Thomson Reuters & National Venture Capital Association
The largest venture-backed M&A transaction during the first quarter of 2016 was
Cisco System's $1.4 billion acquisition of Mountain View, California-based
Jasper Technologies, followed by NetApp Inc's $870.0 million purchase of
Solidfire, Inc, a Boulder, Colorado-based provider of data storage systems.
France's Thales SA acquired San-Jose, California-based Vormetric Inc for $400
million, which ranked as the third largest venture-backed M&A deal during the
quarter.
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serves as the definitive resource for venture capital data and unites its over
300 member firms through a full range of professional services. For more
information about the NVCA, please visit www.nvca.org.
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Datum: 04.04.2016 - 15:00 Uhr
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