More Trends with IPOs and VC Investment

Came across a few more tidbits since my previous post on IPOs. The first comes from Fortune’s Dan Primack who reported that “ten companies have priced U.S. IPOs so far [last] week, and each one has done so either at the bottom of their proposed price range, or below it altogether.” He thinks we’re moving into “trend” territory now.

On the flip side the latest MoneyTree report from PwC, the NVCA and Thomson Reuters reports that venture capitalists invested the most money since Q2 2001 last quarter. Overall, VCs pumped $9.5 billion into 951 U.S.-based companies last quarter, representing a 12% increase in dollars and 14% decrease in deals from Q4 2013.

The quarter included nine rounds of $100 million or more, including top raiser Dropbox ($325m). Software was the leading sector with more than $4 billion, followed by biotech (1.06b), IT services ($815m) and media/entertainment ($743m). Silicon Valley topped the pack regionally with a whopping $4.7 billion for its startups, followed by New England ($1.01b), New York Metro ($961m) and LA/Orange County ($519m).

Troubles in IPO Land?

USA Today reported that all three of the initial public offerings that started to trade last Thursday, lender Ally Financial and drugmakers Adamas Pharmaceuticals and Cerulean, all fell below their offering prices.

Ally Financial broke by falling 4.7 percent below its $25 a share offering price, while Adamas plunged 12 percent from its $16 a share IPO price and Cerulean lost 6.6 percent from its $7 IPO price… While it’s unusual to see three IPOs break in one day, the number of such troubled deals continues to mount. There are now 58 IPOs priced within the past 12 months that are trading below their IPO prices, says John Fitzgibbon of IPOscoop.com. That means a quarter of all deals priced in the period are now broken.

The WSJ also reported last night that Weibo, China’s version of Twitter, sold fewer shares than expected in their IPO. The IPO price was $17 a share, in line with, but at the bottom of, the projected range of $17 to $19. The company sold 16.8 million shares, fewer than the 20 million expected.

So is this just folks tiring of new offerings or are we looking at the start of something bigger?

VC Round Sizes Continue Upward Climb

Pitchbook has come up with a first-quarter infographic that features a few surprises. First, four funds garnered more than 50 percent of the capital raised in the first three months of this year.

The first quarter also saw the most capital invested in a single quarter in the history of venture capital. And we’ve also just seen the most IPOs in a single quarter since the fourth quarter of 2007.

In fact, according to a new report by Thomson Reuters and the NVCA, 36 venture-backed IPOs raised $3.3 billion during the first quarter of 2014, a 50 percent increase, by number of new listings, compared to the previous quarter. The first quarter also marked the fourth consecutive quarter to see 20 or more venture-backed IPOs.