NEW YORK – Following a second quarter dip in the venture-backed initial public offering market, the industry pipeline received a bit of decongestant in the third quarter as 81 deals were successfully executed.
In all, venture-backed companies raised over $7.57 billion in the third quarter through public exits, according to data from Venture Economics and the National Venture Capital Association. While that figure falls short of the $8.5 billion raised in the first quarter, it still represents approximately 55% of all IPOs offered between July and September.
Leading the way was Corvis Corp., an optical networking firm that raised just over $1.13 billion and, at press, was trading at nearly double its $36 per share offering price. Other big venture-backed winners included Equinix, which raised $240 million, Cosine Communications, which raised $236 million and Avici Systems, which netted $217 million.
In terms of sector success stories, public investors flocked to computer software and programming offerings. In all, 16 such deals hit the Street raising a total of just over $1.08 billion. The fiber optics sector actually brought in more cash, but that was due to the Corvis offering, given that it was one of only two fiber optic deals in the third quarter.
Other big sectors included data communications with five deals totaling $650.5 million and pharmaceutical with seven deals bringing in $559.8 million.
Like always, industrial equipment was one of the bigger losers with only $119 million raised from a single offering.
Q3 Venture-backed IPOs Year-by-Year Breakdown
No. of Amt.
Year Deals Raised
1995 46 $2.23B
1996 51 $1.86B
1997 38 $1.43B
1998 20 $1.19B
1999 79 $5.51B
2000 81 $7.57B
Source: Venture Economics
Q3 Venture-backed IPOs Sector Breakdown
No. of Amt.
Year Deals Raised
Wireless Comm. 6 $481.6M
Data Comm. 5 650.0M
Internet Comm. 4 479.0M
Turnkey, Integrated 1 73.2M
Computer, Peripheral 1 45.0M
Computer Services 1 63.0M
Computer Software 16 1,089.0M
Internet Software 2 170.0M
E-commerce/Content 7 470.0M
Semiconductors 6 481.3M
Power Supplies 1 136.0M
Fiber Optics 2 1,234.0M
Scientific Equip. 1 60.0M
Electronics, Other 1 50.0M
Optoelelectronics 1 52.0M
Biotech, Human 6 377.2M
Biotech, Industrial 1 172.8M
Biotech, Equip. 1 69.0M
Biotech, Research 4 352.0M
Medical Therapeutics 4 224.2M
Medical Products 1 31.5M
Pharmaceuticals 7 559.8M
Industrial Equip. 1 119.0M
Finance, Real Estate 1 128.6M
Totals 81 $7.57B
Source: Venture Economics
Venture-backed IPO Totals Year-by-Year
No. of Amt.
Year Deals Raised
1995 206 $8.29B
1996 278 $11.89B
1997 138 $4.95B
1998 78 $3.84B
1999 263 $20.47B
2000 (YTD) 212 $20.38B
Source: Venture Economics