It was a disappointing summer on the liquidity front for U.S. venture capital firms, with the IPO market, which held promise earlier this year, swooning in August and September.
While 10 U.S. venture-backed companies staged public offerings in the third quarter--the most for the period since 2007 when 12 debuted--six of them were in July, according to Dow Jones VentureSource, before market volatility took its toll. The two that went public in September did so overseas. Venture capitalists historically make their best returns through IPOs.
"The fundamental problem in the U.S. is that the companies that need to go public cannot and the ones that can go public don't want to," said Paul Maeder, a general partner at Highland Capital Partners and chairman of the National Venture Capital Association.
To read the full, original article click on this link: Venture firms hurt by weak summer IPO market - MarketWatch
Author: Russ Garland
