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IPOs Outpace M&As in First Quarter

IPOs performed well in the first quarter of 2012, while M&As stalled for the s

Although fewer companies were in the mood for acquisitions in the first three months of 2012, it seems venture capitalists were feeling much more generous. According to Dow Jones, the first quarter offered a strong showing for initial public offerings, the best period for IPOs since 2007's

Although fewer companies were in the mood for acquisitions in the first three months of 2012, it seems venture capitalists were feeling much more generous. According to Dow Jones, the first quarter offered a strong showing for initial public offerings, the best period for IPOs since 2007's fourth quarter and the most active first quarter overall since 2000.

"Greater stability in the public markets, more corporations opening venture units to work closely with startups without acquiring them, and a continued disconnect between entrepreneurs' asking price and what corporations are willing to pay have contributed to a steady decline in M&A activity," stated Jessica Canning, global research director for Dow Jones VentureSource.

While M&As lagged, 20 companies launched their IPOs, with 94 companies being acquired for a total of $18.1 billion. This performance marked the second quarter in a row of drops in deal volumes, Dow Jones found. On the flip side, the score of IPOs were able to raise $1.4 billion, driven in large part by small- and mid-cap IPOs, according to Zoran Basich, Dow Jones VentureWire's editor.

Thomson Reuters and the National Venture Capital Association issued a separate statement noting that venture-backed IPOs enjoyed their strongest opening since the first quarter of 2007, with 19 VC-backed companies making the plunge.

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