With Biotech Companies Leading the Way, Venture-Backed Companies Raised $3.4 Billion in Public Markets
NEW YORK, NY – Twenty seven venture-backed initial public offerings (IPOs) raised $3.4 billion during the second quarter of 2015, a 59 percent increase, by number of offerings, from the first quarter of this year and more than double the level of dollars raised during the previous three-month period, according to the Exit Poll Report by Thomson Reuters and the National Venture Capital Association (NVCA). For the second quarter of 2015, 70 venture-backed M&A deals were reported, 14 of which had an aggregate deal value of $4.1 billion. Venture-backed M&A activity during the quarter fell to its lowest levels, by number of deals, since the first quarter of 2003 as disclosed deal value increased 86 percent compared to the first quarter of 2015.
“After moderating in the first quarter following a blistering pace in 2014, venture-backed IPO activity picked up some steam in the second quarter, delivering 27 high-growth companies to the public markets for investors to stake their claim to innovation economy,” said Bobby Franklin, President and CEO of NVCA. “As has been the case over the last several quarters, life sciences companies continue to lead the way, representing 70% of total public offerings for the quarter with biotech companies alone accounting for 14 of the quarter’s venture-backed IPOs. On the heels of FitBit’s successful IPO, we will be watching to see if there is increased parity between the number of life sciences companies and technology companies making public offerings as the year progresses.”
IPO Activity Overview
There were 27 venture-backed IPOs valued at $3.4 billion in the second quarter of 2015. By number of deals, quarterly volume increased 59 percent from the first quarter of this year and registered a triple-digit percentage increase, by dollars, compared to the previous quarter.
Led by the biotechnology sectors, 19 of the 27 offerings during the quarter were life sciences IPOs, representing 70 percent of total listings in the second quarter.
By location, 23 of the quarter’s 27 IPOs were from U.S.-based companies. In the largest non-U.S. offering of the quarter, Adaptimmune Therapeutics PLC (ADAP), a United Kingdom-based biotechnology company, raised $191.3 million on the NASDAQ stock exchange on May 5th.
In the largest IPO of the quarter, Fitbit Inc (FIT), a San Francisco, California-based health and fitness technology company, raised $841.2 million and began trading on the New York Stock Exchange on June 17th. The company is currently trading 90 percent above its $20 offering price.
Twenty-one companies listed on the NASDAQ stock exchange during the second quarter, while six listed on the New York Stock Exchange.
Eighteen of the 27 companies brought to market this quarter are currently trading at or above their offering price. There are 55 venture-backed companies currently filed publicly for IPO with the SEC. This figure does not include confidential registrations filed under the JOBS Act, where many observers believe the majority of venture-backed companies now file.
Mergers and Acquisitions Overview
As of June 30th, 70 venture-backed M&A deals were reported for the second quarter of 2015, 14 of which had an aggregate deal value of $4.1 billion, the slowest quarter by overall number of deals since the first quarter of 2003.
The information technology sector led the venture-backed M&A landscape with 54 of the 70 deals of the quarter and had a disclosed total dollar value of $2.5 billion. Within this sector, Computer Software and Services and Internet Specific deals accounted for the bulk of the targets with 34 and 13 transactions, respectively, across these sector subsets.
The largest venture-backed M&A transaction during the second quarter was Linkedin Corp’s $1.5 billion million purchase of Lynda.com Inc. Bristol-Myers Squibb’s $800 million acquisition of San Carlos, California-based Flexus Biosciences Inc ranked as the second largest venture-backed M&A deal during the quarter.