Doug Chu is Senior Vice President and Head of the Silicon Valley Office and Western Region for NYSE Euronext’s...
In spite of the recent barrage of winter storms on the East coast, venture-backed companies have still found ways to stay warm in New York. Following on the heels of Demand Media’s successful IPO, NeoPhotonics, a recent venture-backed IPO, opened this morning at $17.83, a 62% premium to its February 1 IPO price of $11.00. So far there have been four venture-backed tech IPOs in 2011, and on average they are up 21%.
2011 carries with it strong momentum from 2010, which saw 72 venture-backed IPOs in 2010. 60 of these raised proceeds over $40mm representing 40% of all U.S. IPOs of that size. The momentum was particularly strong in the latter half of the year with one-third of these larger IPOs coming in the 4th quarter.
In a January 28th interview with Bloomberg former NVCA Chairman, Dixon Doll, predicted 80 to 85 venture-backed IPOs for 2011. Currently there are over 20 venture-backed companies that have filed for an IPO. Nearly half of these are in the Internet sub sector, including names such as LinkedIn, the professional networking site.