Venture-Backed IPOs Gained Strength in Q2

(Reuters) – Venture-backed IPOs saw their strongest quarter since 2000 with offerings valued at $5.5 billion coming to the market in the second quarter of 2011, according to an exit poll by Thomson Reuters (publisher of peHUB) and the National Venture Capital Association (NVCA). (See table below.)

The number of M&As also returned to 2009 levels, with the second quarter seeing 79 venture-backed M&As, 36 of which had an aggregate deal value of $5.4 billion.

For the first half of the year, VC-backed IPOs are up significantly from the same period last year. A total of 36 VC-backed companies raised $6.83 billion from initial public offerings from Jan. 1 to June 30, up from 27 VC-backed IPOs that raised $2.38 billion in the first half of 2010, according to the report from Thomson Reuters and the NVCA. Also, the average size of a VC-backed IPO more than doubled from $93 million in the first six months of 2010 to about $190 million in the first half of this year.

It’s been a field day for the information technology sector, with 14 of the 21 IPO exits coming from this space. Even in the world of M&A, the sector ruled the roost with 56 deals and a total dollar value of $2.7 billion.

“We are not experiencing an IPO bubble and these numbers certainly do not suggest that one is forming,” Mark Heesen, president of NVCA, said.

In the largest IPO of the quarter — Russian internet company Yandex (YNDX.O) raised $1.3 billion on May 24 — the second-largest offering by an internet company after Google’s (GOOG.O) $1.7 billion IPO in 2004.

Reporting by Rachel Chitra of Reuters in Bangalore and Lawrence Aragon of peHUB in San Francisco; Editing by Sriraj Kalluvila