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We saw
the trend coming last fall. Now empirical data is
backing up our gut call on the markets. The people who
started the year thinking growth and funding are being
rewarded. Is it too late to catch the money train?
Over $4.6 billion of venture capital went into over 600
companies in the first quarter of this year.
(Source:
National Venture Capital Association)
While there were only 10 IPOs priced in the first half
of last year, over 100 companies have filed to go public
so far this year.
(Source:
Thomson Financial)
According to Thomson Venture Economics and the National
Venture Capital Association, fourth quarter 2003 posted
a positive venture capital one-year return, 8%, for the
first time in three years. The total private equity
asset class (venture capital, buyouts and mezzanine
funds) posted a strong 18.3% performance in the fourth
quarter representing the second consecutive positive
quarter for the asset class.
After three years of negative returns and a challenging
market, private equity performance is showing signs of
stability. Private equity performance has improved
because the exit markets, the IPO market and the
acquisition market, have strengthened in recent
quarters.
The last few years have been difficult for the private
equity and entrepreneurial communities with the IPO
market virtually closed and the recession making it
difficult for established companies to buy new
technology and make acquisitions. Now that the
tide is turning, all of the pent-up capital that's been
sitting on the sidelines is looking for a place to go.
Now isn't the time to be sitting on the sidelines.
It's time to get into the game. If you have been
considering raising additional capital, it's time to get
serious and to put together a strategic plan.
Your plan can include equity financing, debt financing,
a merger or acquisition, licensing, equipment financing,
or a strategic alliance. There are many options
available to successful companies - and investors are
looking to fund those options!
Contact us at CMI if you need to take the next step
towards obtaining additional funding for your company. |
