Venture-backed IPOs went flat just as quickly as they bounced back. After recording their busiest month this year, VC-backed IPOs went quiet for more than four weeks-Aug. 12 to Sept. 16 (when VCJ went to press). The last company with any kind of private equity funding to go public was buyout-backed Rockwood Holdings, a chemical company that went public on Aug. 17.
Here’s a recap of the market so far this year. Seven VC-backed companies went public and raised $550 million as of the end of August. In comparison, five VC- backed companies went public and raised a total of $1.9 billion in August 2004.
The total number of IPOs for the first seven months of this year is 33, down from 48 in the first seven months of 2004. This year’s average issue size is $75 million, down from $127 million in the same period last year.
One bright spot: All of the VC-backed companies that went public in August were trading above their IPO prices as of the end of the month, and five of the seven surged more than 10 percent. The best performer-and second-best performer on the entire Aftermarket list-was Baidu, often called the Google of China. It priced its shares at $27, and they rose as high as $154 before resting at $81 on Aug. 31.