PRINT THIS PAGE Number of European venture-backed IPOs in 2006 highest since 200019/01/2007. Source: AltAssets. 
European venture-backed companies completed a total of 91 IPOs in 2006, reaching the highest annual level since 2000 (183 IPOs) and outpacing US liquidity activity in the same period, according to the European Liquidity Report from Dow Jones VentureOne. The total amount of capital raised by these IPOs, however, reached only €1.75bn, a 19 per cent decline from the €2.16bn raised by IPOs in 2005. Stephen Harmston, director of global research for VentureOne, said, 'European venture-capital backed companies certainly found opportunity and additional capital financing in the public markets in 2006, particularly on the entrepreneurially-focused smaller exchanges such as Alternext and the Deutsche Boerse Open Market.'
'While these IPOs are not necessarily exits from investors' portfolios, they are providing an additional capital resource for some very promising information technology and healthcare start-ups,' Harmston continued.
The median amount these companies raised at IPO in 2006 stood at €13.1m, whilst the amount received in equity financing prior to IPO was €7.1m, down from €10.3m in 2005. The median time between initial equity financing and IPO is now 5.9 years, slightly longer than a year ago when it was 5.5 years.
The European IPO companies are being valued highly by the markets. The median prevaluation was €41.5m - up from €36.7m in 2005, and the highest median prevaluation since 2001 when it stood at €56.25m.
By industry, there were 38 IT IPOs, which raised a total of €605.2m, and 30 healthcare IPOs, which raised a total of €734.5m. By region, 32 of the IPO companies in 2006 were based in Germany, 17 in France, nine in Sweden, eight in the UK and six in Belgium.
In other exit transactions, there were 185 M&A deals for European venture-backed companies in 2006. This was 26 fewer than in all of 2005. However, by industry, there were more IT company acquisitions in any year since at least 2000, with 125 transactions completed.
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