U.S. Venture Activity Remains Steady as IPOs Rise in Second Quarter

7/16/13Follow @bvbigelow

Venture-backed IPOs staged something of a comeback during the second quarter, as 22 VC-backed startups went public with an aggregated valuation of about $9.6 billion. Healthcare companies made up about half of those IPOs, according to the venture-data tracking firm, CB Insights.

Still, it was a relatively modest period for VC activity. CB Insights says U.S. venture investments totaled $7 billion in 807 deals during the second quarter that ended June 30th.

VC activity was marginally better than the first three months of 2013, when venture firms invested $6.9 billion in 841 deals. The deal count has remained fairly consistent, though, with an average of 825 deals a quarter over the past five quarters, according to CB Insights data. The $7 billion invested during the three months  was down 14 percent from the second quarter of 2012, when VCs invested $8.1 billion in 812 deals.

Mergers and acquisition deals also were in line with the five-quarter trend, and CB Insights counted 105 M&A deals during the second quarter. There was a clear upswing in venture-backed IPOs, though, with Seattle’s Tableau Software (NYSE: DATA) ringing the bell as the biggest tech IPO.

Life sciences, biotech, and medical device companies (the category CB Insights calls healthcare) also showed signs of recovery, with notable IPOs including San Diego’s Receptos (NASDAQ: RCPT) and Ambit Biosciences (NASDAQ: AMBI); Cambridge, MA-based Epizyme (NASDAQ: EPZM); and two companies from Watertown, MA—Enanta Pharmaceuticals (NASDAQ:ENTA) and Tetraphase Pharmaceuticals (NASDAQ: TTPH).

Venture investments in … Next Page »

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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