Venture-Backed IPOs Recovering but Weak: We Compare Results for San Francisco, Boston, Seattle, & San Diego
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the financial meltdown.”
The overall market for IPOs “seems to be opening up somewhat,” Jones says, “but the quality and performance of these companies is still weak.” Of the 21 venture-backed companies that went public during the first half of 2010, Jones says only five traded up since their IPO to show an increase in their share price, as of June 30. Those companies are Financial Engines (NASDAQ: FNGN) of Palo Alto, CA; ReachLocal (NASDAQ: RLOC) of Woodland Hills, CA; Ironwood Pharmaceuticals (NASDAQ: IRWD) of Cambridge, MA; SS&C Technhologies (NASDAQ: SSNC) of Windsor, CT; and Tesla Motors (NASDAQ: TSLA) of San Carlos, CA.
Jones also noted that a number of companies had to lower their share price to get the IPO out the door, which is not a good sign, and no venture-backed medical device companies have gone public since last year. “I’d call that worrisome,” he says.
Sorted by sector, the VentureDeal IPO activity report found six life science companies raised $491 million in gross proceeds; six Internet, digital media, and software companies raised a total of $612 million; and nine companies in the remaining sectors (semiconductors, wireless, mobile, financial services, and transportation) raised $799 million.
In my breakdown of the VentureDeal report for Xconomy cities, the San Francisco Bay Area had the most IPO activity (9), followed by Boston (2), Seattle (1) and San Diego (1). My city-by-city breakdown is here:
—Codexis (NASDAQ: CDXS) Redwood City; Biotechnology; $78 million
—QuinStreet (NASDAQ: QNST) Foster City; Digital Media; $150 million
—Financial Engines (NASDAQ: FNGN) Palo Alto; Financial Services; $127.2 million
—Meru Networks (NASDAQ: MERU) Sunnyvale; Networking; $65.8 million
—Calix Networks (NASDAQ: CALX) Petaluma; Networking; $81.9 million
—Anthera Pharmaceuticals (NASDAQ: ANTH) Hayward; Pharma; $42 million
—Alpha & Omega Semiconductor (NASDAQ: AOSL) Sunnyvale; Semiconductors; $91.5M
—Tesla Motors (NASDAQ: TSLA) San Carlos; Automotive; $226 million
—Telenav (NASDAQ: TNAV) Sunnyvale; Wireless; $56 million
—Aveo Pharmaceuticals (NASDAQ: AVEO) Cambridge; Pharma; $81 million
—Ironwood Pharmaceuticals (NASDAQ: IRWD) Cambridge; Pharma; $188 million
—Motricity (NASDAQ: MOTR) Bellevue; Mobile; $50 million
—MaxLinear (NYSE: MXL) Carlsbad; Semiconductors; $90 million