The M&A market is solid.
From Ben Kuo, Socaltech:
“One of the most frequent questions from high tech startups is: where’s my exit? We caught up with David Siemer, both an investment banker who runs Siemer & Associates (www.siemer.com) and an early stage investor here with Siemer Ventures (www.siemervc.com), to get his thoughts on the subject. Siemer & Associates runs its annual conference next week to delve into the same topics.
What’s the current environment for M&A and IPOs, in general?
David Siemer: I’ll start with IPOs, something we don’t here. We don’t spend a lot of time there, except that we’re active investors and bankers who are affected by what’s happening in the IPO market. Certainly, the IPO momentum seems to be back, and even more surprisingly, ad-tech has been lots of those IPOs. What’s interesting, is that in 2011, there were seven large ad-tech firms which had all planned to go public and hired bankers. But, most did not file their S-1’s. Now, a new breed of companies is finally making it out, which has had a huge impact on valuations. Even now, we’re seeing that at the seed and A round stage. For a couple of years, ad-tech had been heavily out of favor, and it’s bouncing back into favor again. There’s also been a number of decent exits, but IPOs are driving that valuation more than anything. There’s a huge backlog of companies trying to make it out…”
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