NVCA: 24 venture-backed IPOs raised $5.3B in last quarter of 2013, up 91 percent over Q3

By: InnovatioNews Monday January 6, 2014 0 comments Tags: JOBS Act, John Taylor, Thomson Reuters, Twitter

National Venture Capital Association logoNEW YORK CITY - Twenty-four venture-backed IPOs raised $5.3 billion during the fourth quarter of 2013, a slight decline from the previous quarter but a 91 percent increase in dollars compared to that quarter, according to a report by Thomson Reuters and the National Venture Capital Association.

The quarter also marked the third consecutive quarter to see 20 or more venture-backed IPOs since the fourth quarter of 2004, the report said.

During 2013, 82 venture-backed companies went public in the U.S., marking the strongest full-year total for the number of new venture-backed listings since 2007.

"IPO activity for venture-backed companies continues to improve," said John Taylor, NVCA's research head. "The biotech sector is especially notable because it made up over half of the 2013 IPOs, which is more than the previous five years combined.

"The on-ramp provision of the JOBS Act is likely a significant contributor to this shift and the venture industry overall remains hopeful that IPO and M&A levels will further strengthen as the bulging pipeline of mature companies awaits favorable market conditions."

The largest IPO of the quarter was Twitter Inc., which raised $2.1 billion and began trading on the NYSE on Nov. 6.

In a prediction survey by NVCA in late December, 50 percent of CEOs and 49 percent of VCs said they were optimistic that 2014's total IPO volume will increase. The survey also showed 63 percent of CEOs and 61 percent of VCs expect the U.S. economy to improve in 2014.

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