Wednesday, February 8, 2012

Venture Capital Funds Pinned Down by Facebook IPO | Business 2 ...

The Facebook IPO is expected to have broad implications for the market as a whole, and there are 63 venture capital-backed companies in the pipeline waiting to learn more. IronPlanet, backed by Accel Partners and Kleiner Perkins (among others), is watching. The WSJ reports:

?We?re certainly interested in the (Facebook) issue price and how the market responds to them in the first day of trading.? said Greg Owens, CEO of IronPlanet, an online marketplace for heavy machinery that is backed by Accel Partners, Kleiner Perkins Caufield & Byers and others.

IronPlanet filed to go public in March 2010, but it hasn?t pulled the trigger yet because of market conditions. Others in the pipeline include Brightcove, GameFly, Extend Health, Yelp and Kayak.

Renaissance Capital is looking for Facebook to trigger ?a year of recovery? for the IPO market, but that remains to be seen. The WSJ continues about the Facebook IPO:

?It?s a one-off. There?s nothing else like it,? said Martin Wolf, founder of M&A advisory firm Martin Wolf Securities, which counts Microsoft, Symantec, and Red Hat among its customers. ?Facebook?s coattails are a mile wide and an inch deep.?

Relying on Facebook to boost your own IPO, it would seem, is a risky proposition at best.

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Source: WSJ

Photo: louisvolant via Flickr

Source: http://www.business2community.com/finance/venture-capital-funds-pinned-down-by-facebook-ipo-0130556

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