Quarter Wrap: Q3 VC-backed IPOs Rebound from Q2 Slump

Following a second quarter dip in the venture-backed IPO market, the industry pipeline received a bit of decongestant over the past three months as 81 deals were successfully executed.

In all, venture-backed companies raised over $7.57 billion in the third quarter through public exits, according to numbers from Venture Economics and the National Venture Capital Association. While that figure falls short of the $8.5 billion raised in the first quarter, it still represents approximately 55% of all IPOs offered between July and September.

Leading the way was Corvis Corp., an optical networking firm that raised just over $1.138 billion and, as of last Thursday, was trading at nearly double its $36 per share offering price. Other big venture-backed winners included Equinix, which raised $240 million, Cosine Communications, which raised $236 million and Avici Systems, which netted $217 million.

In terms of sector success stories, public investors flocked to computer software and programming offerings. In all, 16 such deals hit the Street raising a total of just over 1.08 billion. The fiber optics sector actually brought in more cash, but that was due to the Corvis offering, given that it was one of only two fiber optic deals in the third quarter.

Other big sectors included data communications with five deals totaling $650.50 million and pharmaceutical with seven deals bringing in $559.8 million.

Like always, industrial equipment was one of the bigger losers with only $119 million raised from a single offering.