The secondary fund offered its forecast along with a review of recent investments. Clearly it sees a burgeoning market for secondary shares.
Among the firm’s top pronouncements: A trillion dollars in public company capitalization will be created in the next five years by today’s top 500 private technology companies.
The reason? “Fast as technological change has been in the last several decades, today’s new technology is changing businesses and consumers’ lives faster than ever before.”
The firm believes 2011 will be a record breaking year: “Virtually every important private technology company will engage in some amount of secondary shareholder activity in 2011.” This leads company executives and boards to take more control of alternative liquidity and to seek top institutional investors.
Millennium’s upbeat outlook extends to the market for venture-backed technology IPOs. This year will top the recent high water year of 2007 in dollar volume, it projects.
As to its own portfolio, Millennium says it made 35 investments in 11 new portfolio companies since the start of 2010. It had four portfolio companies launch IPOs in the past seven months, including Green Dot, NetSpend and RigNet.
Meanwhile, three portfolio companies were acquired. On the list are ArcSight, Airvana and PlaySpan.