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US venture-backed M&A value falls dramatically in 200221/02/2003. Source: AltAssets. 
 Yet more bad news for US venture capitalists hoping for an upturn: the value of venture-backed mergers and acquisitions fell to $7.2bn for 300 transactions in 2002, compared to 336 transactions worth $17.1bn in 2001.
John S Taylor, vice president of research at the NVCA, acknowledged that exits had been a major problem in 2002.
‘Having a strong exit market is essential to a healthy venture capital investment flow and we were challenged in 2002. Looking ahead, it's likely that completing an IPO will continue to be difficult in this environment. Therefore, venture capitalists are looking at M&A as a key part of their exit strategies.'
Software remained the leading sector for venture-backed M&A in the fourth quarter of 2002, accounting for 43 per cent of deals and 40 per cent of the total quarter value.
Telecommunications also made a relatively strong showing with seven deals valued at $172.9m, but there was a surge in healthcare M&A transactions, which accounted for 25 per cent of value for the quarter.
Copyright © 2003 AltAssets
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