CB Insights: VC-backed IPOs hit 5-quarter high thanks to healthcare startups

Summary:Navigating an IPO is a tricky business, but things are looking more promising for certain startups.


Now might be a good time to consider an initial public offering, based on the second quarter report from venture capital and angel investment database CB Insights.

See also: Ayasdi raises $30.6m for big data, machine learning

Analysts found that venture capital-backed IPOs actually hit a five-quarter high during the second quarter of 2013, with the strongest tech IPO registering at approximately $2 billion on offering day.

CB Insights highlighted that the quarter's landmark growth was driven primarily by 11 healthcare startups.

Nevertheless, analysts did describe Q2 as a "mixed bag" given that there were fewer mergers and acquisitions among VC-backed startups than expected.

Additionally, financing and the number of deals were both down on an annual basis.


Going public is a tricky business for many technology startups -- notably consumer tech brands.

Following the disappointing examples set by the likes of Zynga and Facebook (among others), it's easy to see why many consumer tech startups might be more resistant when it comes to declaring an initial public offering.

However, there are more glimmers of hope here and there, all pointing the way towards a possible renaissance of sorts for tech IPOs.

For one, PricewaterhouseCoopers published a report in April hinting at a comeback for tech IPOs this year, projecting a positive outlook for more robust deal activity ahead as political and economic uncertainties subside.

There have been notable success stories in the enterprise space, such as Workday and Marin Software .

Furthermore, just last week the U.S. Securities and Exchange Commission moved to lift a ban on advertising fundraising efforts ahead of going public.

This means that we could end up seeing many tech startups and the VCs attached to them maintain private operations while advertising to raise capital.

The full Q2 report is available to download now, but it is only available to paid CB Insights subscribers.

Chart via CB Insights

Topics: Tech Industry, Enterprise Software, Legal, Start-Ups


Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.