Venture-Backed IPOs Recovering but Weak: We Compare Results for San Francisco, Boston, Seattle, & San Diego

8/6/10Follow @bvbigelow

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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:

San Francisco

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

Boston

Aveo Pharmaceuticals (NASDAQ: AVEO) Cambridge; Pharma; $81 million

Ironwood Pharmaceuticals (NASDAQ: IRWD) Cambridge; Pharma; $188 million

Seattle

Motricity (NASDAQ: MOTR) Bellevue; Mobile; $50 million

San Diego

MaxLinear (NYSE: MXL) Carlsbad; Semiconductors; $90 million


Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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  • Tom

    > Jones says only five traded up since their IPO

    You can take that as bad news (no big jump in price says demand isn’t strong) or good news (underwriter priced stock correctly, company got the best price at IPO for raising capital).