The bad news continued for venture-backed IPOs in April. Just two companies managed to make it out-DexCom and FastClick.com-raising a combined $134 million. In contrast, eight venture-backed companies went public in April 2004, raising a total of $581 million.
Also, the average issue size of the deals so far this year is $71 million, down from an average of $157 million in the same period last year.
It’s worth noting that the majority (six) of the new issues in April 2004 were for biotech or health care-related companies. If you take those issues out of the equation, then April 2005 is just about on par with April 2004. Not exactly great news, but at least it puts things into perspective.
As of this writing, a few flowers could be seen. Of the five companies that made it out as of May 9, one was venture-backed: the unfortunately named China Techfaith Wireless, which had backing from Intel Capital, Qualcomm Ventures and others.
Also, two of the five new issues came from buyout shops: Blackstone’s New Skies Satellites and Brentwood’s teen apparel maker Zumiez. The only other companies able to make it out were an oil and gas exploration company and an oil and gas transportation company-not surprising given rising gas prices.