A single IPO from Silicon Valley in 2008
Posted on January 2, 2009 by Chris
Mercury News is reporting that Silicon Valley produced a single, solitary IPO in 2008. Since taking companies public is primarily what the valley is set up to do (OK, they sell them too but they all want an IPO and selling is the consolation prize), this is a pretty scary statistic and does not bode well for the health of the various venture funds operating on Sand Hill Road.
“IPOs are a closely watched barometer of the valley’s unique economy. The current paralysis is in stark contrast to the IPO frenzy during the so-called “irrational exuberance” of the late 1990s, when several e-commerce startups raised millions of dollars without turning a profit. The bursting of the dot-com bubble vaporized investments and caused about 200,000 jobs to disappear”
The company, ArcSight (NASDAQ: ARST) has actually done pretty well in this era of 40% declines in the index as they are almost trading at their IPO price. We all should be so lucky.
Sphere: Related Content» Filed Under Venture Capital
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