In Q1 2014, the 10 largest VC-backed exits were all tech companies, and only 3 of the 10 largest exits happened via IPO. Of course, the M&A exits of Q1 were pretty big as they included the likes of WhatsApp, Nest Labs and Oculus VR. In Q2 2014, the mega exits were not there, but there were more tech IPOs. Although tech IPOs continue to lag their healthcare brethren in number, the growth in tech IPOs might be a small step in the right direction.
The data below.
Peeling back CB Insights data, Q2’14 saw over 50% of all VC-backed IPO activity go to the healthcare sector – the fifth consecutive quarter in which healthcare has topped tech in terms of IPO quantity.
If analyzing exit valuations by size at the time of exit, two healthcare companies were in the top 10 – Kite Pharma and Ulthera. This was a better showing for healthcare than Q1 when tech pitched a no-hitter and took all 10 of the top spots.
Of the 8 tech exits, 7 exited via IPO including the largest – GoPro. It’s IPO counted venture backers including Steamboat Ventures and US Ventures Partners. Of course, while some Q2 IPOs have since performed extremely well such as Zendesk, others have since fallen a bit including green tech IPO Opower.
Given that significantly more of the biggest VC-backed tech exits went to IPOs in Q2, is the tech IPO window beginning to open up a bit? Let’s see how Q3 2014 shapes up.
All of the top VC-backed exits from Q2 2014 are detailed below. See the 10 largest VC-backed exits in Q1 2014 here.
For more venture-backed exit data, trends and valuations check out the CB Insights Venture Capital Database and our private company valuations and valuation multiples capabilities.