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PRINT THIS PAGE Strong rise in Q2 venture-backed M&A activity helps power first half to highest since 200008/07/2005. Source: AltAssets. 
 A strong rise in the value of US venture-backed M&A in the second quarter of this year helped push the total for the year to date to its highest since 2000, according to figures from VentureOne. The aggregate amount paid in the second quarter was $6.8bn, up 14 per cent from the same period last year, although the number of deals was lower.
John Gabbert, vice president of worldwide research at VentureOne, said, 'At the half-year mark, corporations have spent $14.05bn in M&As for venture-backed companies. This is the most spent on acquisitions in the first of the year since 2000.'
The median amount paid for the 77 venture-backed businesses that were acquired during the second quarter was $70m, also the highest amount since 2000.
VentureOne said that more than half the companies that were acquired during the latest quarter were first financed between 1999 and 2001. The median time between initial equity financing and acquisition was 5.35 years, the longest period in more than a decade.
Despite this evidence of an improvement in the market, there was a pronounced slowdown in the number of venture-backed IPOs. There were only five offerings completed in the second quarter raising $231.7m, compared with 24 IPOs raising $1.35bn in the same period last year.
Gabbert said, 'A combination of stringent legal, regulatory and financial requirements, in addition t near-term uncertainty in the public markets, appears to be increasing entrepreneurs' and venture investors' reluctance to complete an initial public offering.'
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