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Venture-backed IPOs down
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January 11, 2001: 2:13 p.m. ET
But total yearly offerings are still strong despite downturn in fourth quarter
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NEW YORK (CNNfn) - Public offerings of venture-capital backed companies slowed in the fourth quarter of 2000 alongside a general downturn of the number of IPOs during the final quarter of last year, according to a survey released Thursday by the National Venture Capital Association and Venture Economics.
Only 63 companies made their public debuts last quarter compared with 172 IPOs during the same quarter of 1999. Of the total IPOs, 27 venture-backed startups raised $2.43 billion, accounting for 43 percent of all IPOs for the quarter.
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Despite falling valuations and turbulent markets, high quality entrepreneurs continue to find the public markets a ripe source for capital.
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Mark Heesen
President
National Venture Capital Association |
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In spite of sluggish IPO pace during the fourth quarter, it was still a productive year for venture backed companies trying to raise money in public markets.
By the close of 2000, 239 venture-backed businesses went public and raised a record $22.9 billion.
"Despite falling valuations and turbulent markets, high quality entrepreneurs continue to find the public markets a ripe source for capital," said Mark Heesen, president of the National Venture Capital Association. "More importantly, there is no shortage of promising venture-backed companies in the pipeline for future IPOs."
 A plurality of the venture-backed companies that went public during the fourth quarter, 10 of the 27, were from California. The single largest venture-backed deal, however, involved TNPC Inc. (NPW: Research, Estimates). Purchase, N.Y.-based TNPC, which provides electricity and natural gas to small commercial customers, sold 24,000,000 shares of common stock at $21 a share in an offering led by Credit Suisse First Boston and Donaldson Lufkin & Jenrette. 
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