The engine continues to hum. I wrote back in early January that the “IPO is Back, So Is M&A.” New Q1 2011 data from NVCA reinforces this point, as covered by GigaOM this morning. 14 venture-backed companies completed IPOs in Q1, with 11 trading up from their offering price. Another 49 venture-backed companies are on file.
IPOs are happening because, for the most part, the companies offering their shares in 2010 have beat or hit their forecasted numbers. As a result, share prices have tended to increase or at least hold their gains. This makes the investors who buy new offerings happy (they get paid to make money for their investors). The average tech IPO traded up 42% from its offer in 2010. For those who want more detail on the performance of 2010 IPOs, Pacific Crest Securities has a nice recap available via this link.