VC Exits Down In 2011, Says Report

The number of exits by U.S., venture backed companies was down in 2011, according to Dow Jones VentureSource, which said today that it tallied a total of 522 mergers, acquisitions, buyouts, and IPOs during the year. Dow Jones said that those exits totaled $53.2 billion, a 14 percent drop in deal activity versus 2010, although it was a 26 percent increase in capital raised compared to last year. The report found that companies raised a median of $17M in venture financing before M&A or buyout, and took a median of 5.3 years to build their company before acquisition. The median price for a company increased to $71M during 2011.

Those numbers were bolstered by a good year for IPOs, with forty-five companies raising $5.4 billion in public offerings in 2011. That's more than the $3.3 billion raised by 46 companies in 2010. The difference in capital raise was due primarily to two hot Internet companies, Groupon and Zynga, which between the two were responsible for $1.7 billion in their IPOs. Dow Jones says that there are now 60 U.S. venture-backed companies in registration for an IPO.