Year’s sixth VC-backed IPO is a boon for backers

Fourth of July fireworks came early for the venture backers of LogMeIn (Nasdaq: LOGM). The maker of remote access software went public on July 1, producing one of the biggest paper returns for a VC-backed IPO this year.

Following the IPO, five venture firms collectively held 10.8 million shares worth over $213 million at the July 6 closing price of $19.68. In addition, three of the VCs sold shares in the IPO for proceeds of more than $21 million. Factoring in the $25 million the VCs collectively put into the company, that means the VCs have seen an overall paper return of more than 9x. (Of course, shares currently held by the VCs are subject to a lock-up period, and the stock price can go up or down between now and then.)

LogMeIn’s venture backers were 3TS Capital Partners, Integral Capital Partners, Intel Capital, Polaris Venture Partners and Prism VentureWorks, according to Thomson Reuters (publisher of PE Week). The exact amount each VC invested was not available.

Following the IPO, Prism was the company’s largest shareholder, with 3.9 million shares (or 17.6% of the total) valued at $76.7 million on July 6; Polaris was second with 2.94 million shares (13.28%) worth $57.8 million; 3TS was third with 1.99 million shares (9.01%) worth $39.2 million; Integral was fourth with 1.12 million shares (5.07%) worth $22 million; and Intel Capital was fifth with about 889,000 shares (4.02%) worth $17.5 million.

Separately, three firms sold shares in the IPO: 3TS sold 555,248 shares for $8.9 million; Polaris sold 462,860 shares for $7.4 million; and Integral Capital Partners sold 312,524 for $5 million.

Woody Benson, who represents Prism on LogMeIn’s board, did not respond to a request for comment.

LogMeIn priced at $16 on July 1 and saw its price soar to $20.02 by the end of the trading day. It was only the sixth VC-backed IPO of the year, according to Thomson Reuters.

LogMeIn made the second best debut of a VC-backed offering this year. The top first-day performer to date is restaurant reservation service OpenTable (Nasdaq: OPEN), which rose over 59% on its first day. —Lawrence Aragon