Tuesday, April 17, 2007

Behind Silicon Valleys I.P.O. Drought - DealBook

"As more venture capitalists and entrepreneurs are choosing mergers and acquisitions rather than initial public offerings as their exit of choice, the trend has some in Silicon Valley worried, says The San Jose Mercury News. According to industry tracker VentureOne, 40 venture-backed Silicon Valley start-ups were acquired in the first quarter of this year, compared with 53 in all of 1997. Meanwhile,the region was home to 417 companies in 2000, compared with the 280 I.P.Os last year.
Those who are expressing concern include former star tech banker Frank Quattrone and Paul Deninger, vice chairman of investment bank Jeffries & Company. Mr. Deninger said the trend will hamper innovation due to less competition to stand-alone companies."

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