国际英语新闻：Exit routes look rosier for U.S. venture-backed firms

SAN FRANCISCO, April 1 (Xinhua) -- Exit routes appeared to be widening for venture capital-backed companies in the United States with two reports coming out on Thursday showing increased exit activities in the first quarter of 2010.

During the first three months this year, eight U.S. venture- backed firms raised 711 million U.S. dollars by going public on U. S. stock exchanges, matching the number of initial public offerings (IPOs) in all of 2009, according to a report by Dow Jones VentureSource.

In comparison, no U.S. venture-backed company went public during the same period last year.

The first quarter of 2010 was the most active quarter for U.S. venture-backed company IPOs since the fourth quarter of 2007 when 26 companies went public, the report said.

It also found that 77 U.S.-based venture-backed companies raised 4 billion dollars through mergers and acquisitions (M&As) during the quarter. Though the number was flat over the same period last year, the median amount paid for a venture-backed firm increased 17 percent from the year-ago quarter to 27 million dollars.

IPO and M&A are two major exit routes for venture capitalists and other investors to realize their investment.

"A steady exit environment is welcome after the last few years of economic turmoil," Scott Austin, editor of the Dow Jones VentureWire newsletter, said in a statement.

"But exit levels are still far from where they need to be to sustain the industry. The hope is that the numbers posted during the first quarter are a foundation VCs (venture capitalists) can build on over the next year," Austin added.

A separate report, released by Thomson Reuters and the U.S. National Venture Capital Association (NVCA), registered different numbers but painted a somewhat similar rosy picture.

They counted nine venture-backed IPOs in the first quarter this year for companies with at least one U.S. venture capital investor that trade on U.S. exchanges regardless of domicile, also saying the number of IPOs was the largest since the fourth quarter of 2007.

Meanwhile, Thomson Reuters and the NVCA reported 111 venture- backed M&A transactions in the most recent quarter, a number that they said is an all-time quarterly high since records began in 1975.

"The exit activity in first quarter of 2010 has engendered a cautious optimism within the venture capital industry," Mark Heesen, president of the NVCA, said in a press release.

"The IPO volume, while not nearly enough to declare a recovery, has shown the most improvement since the financial crisis began and the pipeline of companies in registration continues to build," he noted.

According to Thomson Reuters and the NVCA, 43 venture-backed companies are currently filed for an IPO with the U.S. Securities and Exchange Commission (SEC).

Heesen pointed out that the record breaking number of venture- backed M&As is also encouraging as the quality of these transactions appears to have held strong.

"It is premature to suggest we have permanently turned the corner, but that corner is in sight and within reach as long as we can continue this positive upwards trajectory over the next consecutive quarters," he said.