IPO Boom Pronounced in Fresh VC Exits Data Released by PitchBook
September 30, 2013
Venture investors exited 131 companies for more than $6.7 billion in the third quarter, tying and slightly exceeding the number of exits and capital raised, respectively, from the second quarter, data released today by PitchBook show. This marks the most active quarter for VC exits this year.
The obvious starlet in recent quarters has been the returned prominence of the venture-backed IPO. Venture capital firms took 19 companies public this quarter, the second highest quarterly total since the end of 2007 (second only to 2Q this year).
One of the most notable things about the IPO boom is the prominence of the pharmaceuticals & biotechnology sector, which represents more than half (28) of all VC-backed IPOs through the first three quarters of the year (55). PitchBook highlighted some of these IPOs in its recent Venture Capital Liquidity Report. The usually strong software sector saw just two exits through IPOs in the third quarter (down 75% from eight in 2Q 2013), which included an offering from the well-known business intelligence company Tableau Software.