This excerpt from a press release issued by the National Venture Capital Association features a quote by the association’s president that highlights some of the comments I’ve made in the past about IPOs and the trickle down effect on investing. Here is the quote: “In order to achieve the level of historical performance that (venture capital) limited partners have come to expect, we must have a thrivings IPO market and acquisitions, and the former essentially closed mid-August of this year. Many fine companies await the market’sstrengthening so that they can access the capital needed to continue their growth trajectories.”
According the data compiled by the NVCA, returns were up significantly as of June 30, 2011 due to easier exits through IPOs and the resulting higher valuations of venture capital portfolio companies.
Want to read the press release in its entirety? Click here.