Out of 39 IPOs in the 3Q19, venture capital brought 16 deals to market, or 40% of 3Q19 IPO activity, mostly healthcare (8) and tech (6). Activity declined due to a pullback in tech multiples, along with fewer biotechs and Chinese issuers. Yet VC IPOs still raised $5.1 billion, double the five-year median.
Eight VC IPOs went public with billion-dollar valuations, including Index Ventures: Datadog (DDOG) and NEA-backed Cloudflare (NET). Peloton (PTON) raised over $1 billion in the largest VC consumer IPO in 20 years.
The overall group averaged a 6% return thanks to the US tech names.
Private equity averaged a 9% gain in the 3Q19, as diverse group of eight PE-backed IPOs raised $2.9 billion.
SmileDirectClub (SDC) represented almost half of PE proceeds, and it was both the fastest grower and worst performer. TPG/Goldman-backed insurer ProSight (PROS) was the top-performer, finishing the quarter with a 38% gain. PE also backed two software providers: Vista Equity’s Ping Identity (PING) and Thoma Bravo’s Dynatrace (DT).
Read more about VC/PE performance in our 3Q19 IPO Market Review.
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