Report: Look For Venture-Backed Exits To Rise Further This Year


With 2010 a wrap, industry watchers keep on predicting a hot 2011 for M&A and IPO activity. The latest is Dow Jones (NSDQ: NWS) VentureSource, which tallies up the total number of venture-backed exits in 2010 and determines that M&A transactions and IPOs by venture-backed companies will both rise this year.

Dow Jones VentureSource says that already in 2010 the total number of venture-backed exits — 514 — was up 25 percent year-over-year and close to the 613 reported in pre-recession 2007. The total amount of money raised in those transactions was more than $40 billion, up 72 percent year-over-year.

The firm says there were 445 M&A transactions that raised $33.9 billion in 2010, compared to 381 transactions that raised $20.8 billion in 2009. Meanwhile, it counted 46 venture-backed IPOs in 2010, compared to only 8 in 2009. Going ahead, it says it expects M&A activity to increase and IPOs to jump too, noting that 44 venture-backed companies are registered to go public, up from 25 at the start of 2009.

The Dow Jones VentureSource figures look at venture-backed companies across all industries, a contrast to some of the other reports we have written about over the last week that have focused on transactions in the media sector. Those, however, have shown very similar trends.

Jordan, Edmiston Group, for instance, said the number of media deals increased 39 percent in 2010, while fellow media i-bank Petsy Prunier said the number of overall transactions (including fundings) was up 49 percent. Both banks projected those numbers would rise next year. See the pertinent charts from the Dow Jones VentureSource report here.

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