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Desert-like conditions for IPOs
 Desert-like conditions for IPOs 7/14/2008 Whether it’s a sign of investor nervousness, lack of liquidity or general economic skittishness, there is bad news out there for start-up tech companies. In what may be one of the most significant setbacks for growth and development in a long time, the National Venture Capital Association reported that no venture-backed companies made an initial stock offering in the second quarter of 2008. How big of a development is this? This is the first time zero IPOs have been carried out in a quarter for 30 years. According to NVCA leaders who were quoted by in a Washington Post story the situation is “a crisis” that could create a larger investment log jam. “The more time you have to spend with an existing portfolio company, the less time an investor can spend searching for new opportunities," said Mark Heesen, president of the NVCA. "Venture-backed companies that successfully enter the public markets represent a critical job-creating engine for the economy, and that engine has completely shut down." This funding drought comes at a bad time for hundreds of ceramic related start-ups that have been making major strides in fuel cells, solar energy, nano tech applications, and bioceramics, to name a few. It’s also bad timing insofar as the job market is concerned. One investor interviewed by the Post, Don Rainey, a general partner in GroTech Ventures of Vienna (Va.), warned, "If a 14-person company doesn't hire an additional three people, it won't really be noticed. But if a million small companies stop hiring, that will have ripple effects," he said. << Back to News Join our online discussion forum and comment on this article!
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