DowJones Venture Source has released its quarterly data on venture-backed exists and its appears that M&A activity has dropped in Q1 2011 despite the momentum that venture-backed exits gained throughout 2010.
In the first quarter of 2011, 104 U.S.-based venture-backed companies achieved liquidity, netting $9.8 billion, according to VentureSource. That represents a 21% decrease in exits and a 17% increase in capital raised from the first quarter of 2010 when 131 exits raised $8.4 billion.
So why is M&A activity down? Jessica Canning, director of global research for Dow Jones VentureSource says that despite the fact that companies have plenty of cash on hand, acquirers may feel that rising valuations are making acquisitions more risky.
To read the full, original article click on this link: M&A Activity Down 22 Percent in Q1, But IPOs And Acquisition Amounts On The Rise
Author: Leena Rao
