US venture-backed liquidity reaches $52.9bn in 2007

During the fourth quarter US venture capitalists garnered nearly $16.2bn in liquidity from the sale of 106 venture-backed companies and more than $2bn from the IPOs of 26 others, the report found.

'Without question, 2007 was a banner year for venture-backed liquidity,' said Jessica Canning, director of Global Research for Dow Jones VentureSource. 'Not only did the industry have the largest number of completed public offerings since 2000 with 74, but it also saw the annual median amount raised at IPO break $75m for the first time on record. Likewise, the median post-valuation for companies completing M&As in 2007 reached $97.5m, just under the $100m record set in 2000.'

'While venture-backed companies raised huge amounts from M&As in 2007, it also took a great deal of time and capital to steer these companies to liquidity,' Canning continued. 'While the median amount of venture capital raised prior to liquidity held steady with 2006 at $21.5m, the median number of years to reach liquidity stretched to a record 6.7 years in 2007.'

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