Initial public offerings by start-up companies with venture backing fell to 13 last quarter, down from 29 the previous quarter and 24 a year earlier, as market turmoil deterred start-ups from pursuing IPOs, the National Venture Capital Association said Thursday. The offer amount totaled $1.75 billion, an average of $134.5 million per company, compared to $2.7 billion or $112.7 million per company a year earlier.
Solar-energy company Sunrun, with a $250.6 million IPO in early August, raised the most money in its IPO. The bulk of offerings came from the life-sciences sector, with 10 IPOs. Two-thirds of offerings were trading above their offering price, the NVCA said, adding that the increasing tendency of investors to inject large amounts of cash into companies that might otherwise list on public markets was creating a solid pipeline of future IPOs.
Last quarter, 90 venture-backed companies agreed to acquisitions by or mergers with other companies, up from 74 in the prior quarter and down from 136 a year earlier. Of the 20 companies that disclosed deal size, the average was $134.5 million, up from $130.6 million in the prior quarter and $112.7 million a year earlier.