VCs Interested in the PIPE Business?

With IPOs still MIA, VCs are having to get creative with their investment approach (good!).  An article over at PEWeek outlines the rise in venture funds investing in public companies.  

The PIPE market in general has been hot lately with 2008 values being double what they were in ’07 ($177.3 billion raised through 1,283 transactions, versus  $84 billion raised via 1,416 transactions in 2007), and PwC is predicting that 2009 will see even greater increases.  It stands to reason that venture capitalists would get in the game as well, considering that valuations are advantageous, and most of these publicly traded firms got to where they are, i.e. the IPO, thanks to having VCs on board.  Probably not the best news for start-ups looking for money, but interesting to see how it plays out.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: