Venture backed exit activity very slow, with one exception

The A123 Systems IPO raised $380.1 million in the third quarter, the largest IPO since May 2007. The 8 IPOs in 2009 are better than the 6 in 2008, yet far shy of 2007’s 86 venture backed IPOs. These numbers, while a little better than 2008, demonstrate the current sluggishness of the market. M&A deals are also showing similar signs with 189 deals so far in 2009 versus an average of 361 for the previous three years.

Venture backed exits

Venture backed exits

While this data gives only a narrow perspective on the markets, it does invite the comparisons of CleanTech based ventures vs. other sectors in a capital constrained economy.  Can cleantech ventures fare better than other sectors due to their unique qualities? (Sectors that satisfy inelastic demand, geopolitcal preferences, environmental concerns, and at times a hedge to increasing commodity prices.)

Sources: http://www.nvca.org/index.php?option=com_content&view=article&id=216&Itemid=486

http://www.nvca.org/index.php?option=com_docman&task=doc_download&gid=490&Itemid=93

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