Despite a bullish stock market in Q1, private investors and companies were increasingly skittish. Although the number of initial public offerings (IPOs) and venture capital (VC) deals remained steady, their average values declined. A typical IPO garnered about one-third less in Q1 than one year earlier; VC rounds also fell in value ($20 million versus $17 million in Q1 2005). Another reflection of investor caution was a big increase in funds raised through debt and private investment in public equity (PIPE) deals. Overall, total financing grew by about 13% quarter-over-quarter and 137% year-over-year.
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Lawrence, S. Investors bullish in Q1. Nat Biotechnol 24, 486 (2006). https://doi.org/10.1038/nbt0506-486
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DOI: https://doi.org/10.1038/nbt0506-486
