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Venture Capital Exit Activity Dips in 3Q 2013

Sluggish year for VC liquidity overall, but exit sizes are increasing

SEATTLE, Sept. 30, 2013 - According to the latest venture capital data from PitchBook Data, Inc., venture firms completed 131 exits totaling $6.9 billion in 3Q 2013. The overall number of exits was in line with recent activity but the lack of any billion dollar exits caused the total capital amount to drop by 23% from the $9 billion seen during the same period a year ago.
Download a Venture Capital Exits Snapshot here

PitchBook's Key Insight:

Though venture capital exit counts and total capital value are down, venture capital firms are seeing better returns on their realized investments. A rise in the median exit size for venture capital-backed portfolio companies from $55 million in 3Q 2012 to $82 million in 3Q 2013 is likely a major factor. More than a few companies even experienced exit valuation step-ups (an increase in valuation from one round to the next) of more than 100% this quarter.

"Billion dollar exits like Yammer and Nicira Networks last year are the homerun every VC dreams for," said John Gabbert, CEO & Founder of PitchBook. "The median exit deal size increasing to $88 million though and the number of companies seeing positive exit valuation step-ups bodes well for strong sustainable returns for venture capital firms."

Other Insights from PitchBook:

  • Twenty VC-backed companies went public in 3Q raising a total of $1.9 billion, down slightly from the 24 IPOs in the previous quarter (2Q 2013).
  • There were 112 acquisitions of venture-backed companies in 3Q, totaling $5 billion.
  • The median acquisition deal size more than doubled from 3Q 2012 ($36 million) to 3Q 2013 ($82 million).
  • The top three VC exiters for the quarter include SV Angel, Khosla Ventures and Y Combinator.
  • The Software industry accounted for 42% of exits, followed by Healthcare at 24%.
  • Locu, acquired by The Go Daddy Group, had the largest exit valuation step-up in 3Q. Their Series A valuation of $11.7 million in April 2012 jumped 495% to a $70 million exit valuation.

About PitchBook Data

PitchBook Data, Inc. is a research firm providing superior data, news and analysis on the venture capital and private equity industries. PitchBook provides its clients with the highest quality information on the entire investment lifecycle through its award-winning online PitchBook Platform.
Better Data. Better Decisions.

Media Contacts
Tessa Griffin
PitchBook Data, Inc.
(206) 438-9273

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