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New IPO Lows

Remember the days of the dotcom bubble of the late 1990s, when it seemed that any company with a plain-language domain name or a cute mascot -- like or -- could launch an initial public offering?  That era is long gone. During the first half of 2008, only five venture-backed companies held an IPO, compared to 43 for the same period in 2007, reports the San Jose Mercury News. Moreover, for the first time in 30 years, a fiscal quarter ended without a single IPO for a venture-backed firm. And the gloomy outlook for IPOs is not destined to change any time soon. According to a survey of 662 venture capitalists, 81 percent do not anticipate the IPO market opening in 2008.

VCs worry that fewer IPOs may "imperil entrepreneurialism and investment over the long term" and hurt the competitive marketplace. The decline in IPOs also means less work for lawyers who handle these deals.   

How is the decline in IPOs impacting your firm's practice?  Has your firm replaced IPOs with other types of corporate work or is it still hopeful for a trip back to the late 1990s?

Posted by Carolyn Elefant on July 1, 2008 at 04:52 PM | Permalink | Comments (0)


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