It turned out Tuesday was just a brief respite. On Wednesday Today we were back in the the business of a market sell-off. Besides the public companies that got a haircut, the tumultuous market also dashed the hopes of six of the 12 companies on the docket to go public this week. Then, Thursday, the market surged back, with the Dow up nearly 4 percent.
On Tuesday, three companies postponed their offerings, including 3-D motion-sensing company InvenSense Inc, a VC-backed company that hoped to raise $99.8 million.
On Wednesday, another three companies postponed, including two VC-backed startups: employee benefit program provider WageWorks, which held off on a $49 million IPO, and medical services provider WhiteGlove, which tabled a $27.5 million offering.
WageWorks has raised a total of $46.6 million since 2000 from Advent International, ArrowPath Venture Capital, Camden Partners and VantagePoint Capital Partners, according to Thomson Reuters (publisher of peHUB). WhiteGlove has raised a total of $20.2 million since last year from Enhanced Equity Fund and an undisclosed firm, Thomson Reuters reports.
One VC-backed company slashed its offering price to get its IPO done: Carbonite on Wednesday lowered its offering range from $15 to $17 to $10 to $11 and ended up pricing at $10 per share. The online backup company has raised a total of $69.7 million since 2006 from CommonAngels, Crosslink Capital, Four Rivers Partners, Menlo Ventures and Performance Equity Management, according to Thomson Reuters.
There is disagreement about whether the IPO window is shut. Geoff Yang, a general partner at Redpoint Ventures, tweeted on Monday: “The sound you just heard was the IPO window slamming shut.”
But Bill Gurley, a general partner with Benchmark Capital, tweeted that Yang’s assessment “was simply not true.” Gurley went on to tweet: “More color: because great companies don’t need a hot window,’ only shitty ones do. Yelp, Fbook, Dropbox and many others could go mañana.”
What do you think peHUB readers? Is this a temporary setback for VC- and PE-backed IPOs or do you expect the window to be shut for some time? Take our short survey and please share your thoughts in our comment section below.
Jonathan Marino contributed to this story.
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