1 / 20

Venture Capital-Backed IPO Issuance: 2005 Review and the Outlook for 2006

Venture Capital-Backed IPO Issuance: 2005 Review and the Outlook for 2006. Robert Keiser Senior Research Manager – Capital Markets Thomson Financial Research Group. $4,461. $15,764. Rank Year #IPOs Off Amt $M. 1 2000 264 $25,499.4 2 1999 270 $20,882.1 3 1996 278 $12,069.7

olive
Download Presentation

Venture Capital-Backed IPO Issuance: 2005 Review and the Outlook for 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Venture Capital-Backed IPO Issuance: 2005 Review and the Outlook for 2006 Robert KeiserSenior Research Manager – Capital MarketsThomson Financial Research Group

  2. $4,461

  3. $15,764

  4. Rank Year #IPOs Off Amt $M 1 2000 264 $25,499.4 2 1999 270 $20,882.1 3 1996 278 $12,069.7 4 2004 93 $11,014.9 5 1995 205 $ 8,147.2 6 1992 197 $ 7,521.3 7 1993 221 $ 6,688.1 8 1991 157 $ 4,922.5 9 1997 138 $ 4,826.2 10 1994 167 $ 4,670.9 11 2005 56 $ 4,461.0 12 1998 79 $ 3,881.1 13 2001 41 $ 3,489.9 14 2002 24 $ 2,473.5 15 2003 29 $ 2,022.7 16 1990 70 $ 1,395.9

  5. Jan-98 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Russell MicroCap Russell SmallCap S&P 500 US Micro, Small, and Large Cap Stock IndicesThe S&P 500 Lags Since 2000! 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0

  6. $250 40 35 $200 30 25 $150 20 $100 15 10 $50 5 $0 0 2004 1980 1982 1986 1988 1990 1992 1994 1996 1998 2000 2002 1984 Avg Size VC IPO Avg Size Buyout IPO Avg Age VC IPO Avg Age Buyout IPO Average Size ($ Mil) & Company Age (Years) of Annual IPO Production Over Time $235.3 24.0 $79.7 8.1

  7. US Venture Rank Year Capital-Backed M&A ($Mil) 1 2000 $68,492.11 2 1999 $37,513.52 3 2001 $16,798.92 4 2004 $15,437.89 5 2005 $15,249.41 6 1998 $ 9,550.40 7 1996 $ 8,531.03 8 2002 $ 7,874.36 9 2003 $ 7,726,08 10 1997 $ 7,444,13 11 1995 $ 3,788.32 12 1994 $ 3,474,64 13 1992 $ 2,544,80 14 1993 $ 1,701.19 15 1988 $ 542.14 16 1987 $ 398.14

  8. 400% 40.00% 300% 30.00% 200% 20.00% 100% 10.00% 0% 0.00% -100% -10.00% -200% -20.00% -300% -30.00% -400% -40.00% 1986-2 1987-2 1988-2 1989-2 1990-2 1991-2 1992-2 1993-2 1994-2 1995-2 1996-2 1998-2 1999-2 2000-2 2001-2 2002-2 2003-2 2004-2 2005-2 1997-2 Qtrly y/y Chg VC IPOs Qtrly y/y Chg S&P 500 Venture Capital IPO Issuance S&P 500 Performance Relationship; R2=50.7%

  9. 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% 1991 1994 1995 1999 2003 2004 2005 1988 1989 1992 1993 1996 1997 1998 2000 2001 1990 2002 S&P 500 MSCI Euro DJ ASIA/PAC US, EU, & Asia Equity Performance YoY

  10. 8,000 $120,000 7,000 $100,000 6,000 $80,000 5,000 4,000 $60,000 3,071 3,000 $40,000 $26,232 2,000 $20,000 1,000 0 $0 1980 1982 1984 1986 1988 1990 2004 1992 1994 1996 1998 2000 2002 # VC Company Investments $ VC Investments Pipeline - Annual # of Companies Receiving Venture Capital Funding and Amounts ($ Mil)

  11. 12% 1600 1400 10% 1200 8% 1000 6% 800 S&P 500 Risk Premia 600 4% 400 2% 200 0% 0 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-90 Jan-85 Jan-86 Jan-87 Jan-88 Jan-89 Jan-02 Jan-03 Jan-04 Jan-06 Jan-05 Risk Premia S&P500 The Stock Market and Risk Premia

  12. Issuance Period $ Mil # 1/1/1990 - 2/2/1990 867.5 19 1/1/1991 - 2/2/1991 856.1 5 1/1/1992 - 2/2/1992 3,237.1 46 1/1/1993 - 2/2/1993 3,180.0 34 1/1/1994 - 2/2/1994 3,515.2 46 1/1/1995 - 2/2/1995 1,638.9 25 1/1/1996 - 2/2/1996 1,711.9 38 1/1/1997 - 2/2/1997 2,270.7 37 1/1/1998 - 2/2/1998 1,507.6 22 1/1/1999 - 2/2/1999 2,250.0 28 1/1/2000 - 2/2/2000 3,334.4 20 1/1/2001 - 2/2/2001 395.6 8 1/1/2002 - 2/2/2002 1,297.5 3 1/1/2003 - 2/2/2003 ▬▬▬▬ 1/1/2004 - 2/2/2004 1,494.8 9 1/1/2005 - 2/2/2005 2,133.9 10 1/1/2006 - 2/2/2006 2,728.8 19

  13. 1998 Venture Capital Investments by Tech Applications

  14. 2001 - 2005 Venture Capital Investments by Tech Applications

  15. 1998 VC Investments by Tech Applications 2001 – 2005 VC Investments by Tech Applications

  16. 2001 – 2005 Non-Internet Venture Capital Investments by Industry $97.87B

  17. Growth Rate of Non-Internet VC Industry Investments 2005 over 1998 -14% 3% 23% 36% 133% 62% 67% 97% 87%

  18. 2001 – 2005 Non-Internet VC Industry Investments $97.87B Growth Rate of Non-Internet VC Industry Investments 2005 over 1998 3% -14% 23% 133% 36% 62% 67% 97% 87%

  19. 2005 Non-Internet Venture Capital IPOs %Mil Focus Media (China) Holdings Co., Ltd. $171.70 Under Armour, Inc. $157.61 Adams Laboratories, Inc. $135.15 Heartland Payment Systems $121.50 Saifun Semiconductors, Ltd. $117.50 Advanced Analogic Technologies, Inc. $106.00 iRobot Corporation $103.20 Coley Pharmaceutical Group, Inc. $ 96.00 Vimicro Corporation $ 86.97 Aspreva Pharmaceuticals Corporation $ 79.20 Ikanos Communications, Inc. $ 76.80 Silicon Motion Technology Corporation $ 70.35 LHC Group, LLC $ 67.20 Genomic Health, Inc. $ 60.20 DexCom, Inc. $ 56.40 Somaxon Pharmaceuticals, Inc. $ 55.00 NxStage Medical, Inc. $ 55.00 ViaCell, Inc. (FKA: t.Breeders, Inc.) $ 52.50

  20. 2005 Non-Internet Venture Capital IPOs %Mil XenoPort, Inc. $ 52.50 Allion Healthcare, Inc. $ 52.00 AtriCure, Inc. $ 48.00 CombinatoRx, Inc. $ 42.00 Sunesis Pharmaceuticals, Inc. $ 42.00 Favrille, Inc. $ 42.00 CryoCor, Inc. $ 40.80 Icagen, Inc. $ 40.00 Threshold Pharmaceuticals, Inc. $ 37.33 Pixelplus Co., Ltd. $ 36.00 Micrus Corporation $ 35.75 Avalon Pharmaceuticals, Inc. $ 28.88 Hoku Scientific, Inc. $ 21.00 Electro-Optical Sciences, Inc. $ 20.00 HemoSense, Inc. $ 19.25 Accentia BioPharmaceuticals, Inc. $ 19.20 A4S Security, Inc. $ 7.20

More Related