Strong financing, weak IPOs
Hi,
In our recent Q2 2012 VC Report, there was very healthy financing activity and lots of billion dollar valuations, but on the exit front, tech IPO activity remained modest (even weak).
Marc Andreessen commented on the report saying that back in the day (2000), most of those companies would have gone public instead of raising in the private markets.
The result of this tight IPO market for us has been a lot more hedge funds and mutual funds taking an interest in investing in the private markets. Not sure how this will all end, but it certainly seems that investing, especially in later-stage tech companies, is going to continue to get more competitive.
Cheers,
Anand
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VCs got extremely busy in Q2, completing 300+ deals in each month of the quarter. With a plethora of mega rounds throughout the quarter, monthly funding levels came in at over $4B per month which is much higher than recent levels. See the data from our Q2 2014 report.
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