Venture capital and IPO markets open full tap

Venture capitalists raised $17.5 billion in Q2, the most since the tech bubble top in 2000 according to a survey by PricewaterhouseCoopers and the National Venture Capital Association.  This was 30% higher than Q1.

There were 34 initial public offerings (IPOs) in June, the highest June total since 2000.  The biotechnology space is white hot.  Nearly 30% of the 109 IPOs year-to-date were biotech outfits, easily outpacing the 12% in 2000.  Reminiscent of the dot-com craze 15 years ago when the quality of IPOs fell off a table, more biotech companies are coming public at an earlier stage of development.  Aeglea BioTherapeutics, for example, is seeking to raise $86 million even though its primary drug hasn’t started early-stage trials.  According to Mark Arbeter, 78% of companies going public the past 6 months are losing money, exceeded the peak in 2000.  Big first day moves are another reminder of the tech bubble.  On June 29, Seres Therapeutics popped 186%.  Just last week, cybersecurity firm Rapid7 popped 52% on its debut while cancer drug developer ProNai Therapeutics soared 81%.

 

 

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