Transcript of " Venture Backed IPO Market Impacted By Economic Uncertainty"
Jeanne Metzger, NVCA, 703-524-2549 ext. 116, email@example.com
Josh Radler, Thomson Venture Economics, 973-353-7139, Joshua.firstname.lastname@example.org
VENTURE BACKED IPO MARKET IMPACTED BY ECONOMIC UNCERTAINTY
Only One Venture Capital Backed Company Goes Public in First Quarter of 2003
Newark, NJ—April 1, 2003--One US- based venture-backed company, Accredited Home Lenders,
Inc., raised $77.2 million through an initial public offering (IPO) in the first quarter of 2003,
according to Thomson Venture Economics and the National Venture Capital Association. This figure
represents a decline from the fourth quarter of 2002 when four US based venture-backed companies
went public. It is also down from a year ago when four companies went public during the first
quarter of 2002.
Venture-backed companies were not alone in feeling the impact by the continued struggling
economy. Overall the total US IPO market only saw three companies go public during the first
quarter of 2003 raising $295.8 million dollars compared to twenty-six IPOs in the fourth quarter of
2002 raising $3.4 billion.
Accredited Home Lenders, Inc., which provides wholesale mortgage services received financing from
established venture capital firms Enterprise Partners and Crosspoint Ventures. The Company offered
9,650,000 common shares at an offer price of $8 dollars per share and the lead manager on the
issuance was the Friedman Billings Ramsey Group.
Analysis of Recent Quarters' IPOs
Number Venture Venture
of Total Avg. Backed Backed
Venture Venture Venture Post Post
Backed Backed Backed Offer Offer
Quarter Number IPO's in Offer Size Offer Size Value Value
Ending of IPO's the U.S. ($Mill) ($Mill) ($Mill) ($Mill)
44 20 1,505.5 75.3 9,182.3 459.1
19 8 500.1 62.5 2,462.7 307.8
29 8 662.5 82.8 4,047.6 505.9
11 5 279.9 56.0 994.6 198.9
29 14 1,447.7 103.4 5,912.4 422.3
21 4 376.3 94.1 2,398.0 599.5
40 14 1,336.1 95.4 5,339.1 381.4
7 1 30.0 30.0 153.4 153.4
26 4 231.2 57.8 523.8 130.9
3 1 77.2 77.2 147.8 147.8
Thomson Venture Economics/National Venture Capital Association
The drop in venture-backed IPO activity comes at a time when the public markets continue to
struggle amidst substantial economic uncertainty. This ambiguity coupled with a precarious global
climate has created an instability that many in the venture industry are waiting out.
Jesse Reyes, Vice President of Thomson Venture Economics, states quot;The venture industry has been
looking for signs of life in the exit market. For now, it is not the IPO market. Hopefully the trade
sale exit market will compensate.quot;
“Venture capitalists continue to take a prudent and patient approach regarding potential exits for their
portfolio companies,” said Mark Heesen, President of the National Venture Capital Association. “The
combination of a struggling economy and now a war of uncertain length fosters an environment that
is not that conducive for young start-ups to go public. The venture community is committed to
supporting their portfolio companies and building sustainable businesses, recognizing that exit
opportunities will inevitably emerge for solid companies.”
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