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Current Trends in Financings and Transactions
This 8 page tome is the only industry publication that incorporates both the track record and future outlook on private equity funding and M&A deals. The paper gives you in-depth analysis and insight into the impact that trends may have on companies seeking investors, deals at all stages, deal conditions, proceeds and pricing. The report goes beyond the press releases, further than the stories behind the headlines; it follows the trajectory of the market. As Wayne Gretzchy would say, this report goes "not where the puck is but where the puck is going". This paper offers information on deal trends at the early stage of funding, commentary on important trends in private equity, tables of venture IPOs and M&As, strategy and market insight on venture fund activity. IPO and VC Market Review The drop-off in the IPO market continued in 2002, leaving the IPO market all but dead and the plunge has continued into this year. Quarter one of 2003 was even worse with only 3 IPOs compared to 26 IPOs in Q4 2002. Economic uncertainty has put the IPO market on hold, producing a much different investment arena than seen in the late 1990s. Result: It is increasingly harder to achieve ROI requirements of institutional funders. The number of M&A deals continued a downward trend in the first quarter of 2003. After a crazy couple of years of "have business plan on napkin, will fund," the private investing community has regained its composure. Now VCs are investing larger amounts in fewer companies, spending more time working hands-on with their portfolio companies, and proportionately turning more towards the M&A market for exit opportunities. It may be a long time before any year can compare to the investing frenzy of the end of millennium. Below is a summary of VC activity by sector in 1Q03. In a sign of the poor investing times, more than 60% of 200 venture capitalists doubt funding levels will increase before early 2004, and only a handful expect their companies to go through an IPO. That echoes recent figures. Last year, venture investments remained anemic. Venture capital investments in Q1 2003 were the lowest dollar value they’ve been since 1997. The number of companies receiving funding was the lowest since 1996. Only 1% of VCs believe they will cash out of a company via an IPO. The vast majority, 95 percent, indicate their most likely path for exiting an investment in a company was through a merger or acquisition. This notion is supported by the fact that, reflecting the continued lethargic IPO market, only one U.S. venture-backed company raised $77.2 million during the first quarter of 2003 via an IPO. [continued...] Want to know more? Download the White Paper "Current Trends in Financings and Transactions" for just $75.95. People who ordered this paper also ordered: |
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