RED HERRING | Little Hope for IPOs in 2006

Companies will continue to rely on the acquisitions market as an easier, safer exit strategy but will also search for more innovative opportunities, said the association Monday in its forecast of venture capital trends for 2006. More companies will consider going public on foreign exchanges or soliciting offers from private equity firms.

Out of the 10 largest venture-backed IPOs this year, only two involved companies selling shares on U.S. stock exchanges, research from Red Herring and Dow Jones Venture One shows. "