Ten venture-backed companies raised $720.7m through IPO in Q1 2005, according to Thomson Venture Economics and the National Venture Capital Association. This marks the lowest level of activity since Q3 2003, when just nine venture-backed companies raised $733m. The IPO total for Q1 2005 brings an end to three consecutive quarters of more than 20 IPOs and five consecutive quarters of over $1bn in total offering size. The first quarter is historically the slowest in terms of IPO activity.
Of the ten IPOs in Q1 2005, five were of technology companies and two of these represented the largest offerings. They were OptionsXpress, backed by Summit Partners, which raised $198m, and Gravity Company, backed by Hanmi Venture Capital, IONE Venture Capital and KTB Network, which raised $108m.