1. Emily Mendell, NVCA, 610-359-9609, emendell@nvca.org
Joshua Radler, Thomson Venture Economics, 212-806-3146, Joshua.radler@thomson.com
Venture-Backed IPO Market Continued Steady Climb in Third Quarter of 2004
Google, Internet Companies Positively Impacted Quarter
New York, NY- October 1, 2004—Twenty-four venture-backed companies raised $3.2 billion through
Initial Public Offerings (IPOs) in the third quarter of 2004, according to Thomson Venture Economics and
the National Venture Capital Association (NVCA). Although down from the prior quarter’s total of
twenty-nine IPOs, the third quarter continued the trend of steady IPO activity seen over the last year. The
$3.2 billion raised marks the third consecutive quarter over $2.0 billion, and the fourth consecutive quarter
over $1.0 billion. The quarter was highlighted by Google, Inc.’s $1.7 billion IPO, which accounted for
52% of the $3.2 billion raised. Nevertheless, twenty-four venture-backed IPOs ranked second for activity
since the fourth quarter of 2000, when twenty-seven venture-backed companies went public. Overall,
eighteen of the twenty four companies, or 75%, are currently trading above their offering price.
Boosted by Google, Inc., there were 13 tech IPOs, of which 5 were Internet-related in the third quarter.
Google had an investor group comprised of Kleiner Perkins Caufield & Byers, Sequoia Capital, and Angel
Investors, LP. The next largest venture-backed IPO, also Internet related, was MortgageIT, Inc., which
raised $175.2 million followed by Ness Technologies, which raised $140.1 million.
“This last quarter is a testament to the tenacity of entrepreneurs and venture capitalists who were able to
persevere during difficult times and emerge as strong, viable public companies,” said Mark Heesen,
president of the National Venture Capital Association. “These organizations are poised to move forward as
job and revenue generators and vehicles of innovation across a number of sectors including the Internet,
Communications, and Life Sciences. We expect that this trend will continue in the coming year.”
This quarter the Life Sciences sector had eight venture-backed IPOs, raising a total of $380.0 million. The
largest IPO in the LifeSciences Sector was MannKind Corporation, which raised $87.5 million and was
backed by Biomed Partners. The next largest Life Science IPOs were Idenix Pharmaceuticals, Inc., which
raised $81.2 million followed by Syneron Medical, which raised $60.0 million.
In addition to the IPOs completed this quarter, there are currently 81 venture-backed companies “in
registration” with the Securities and Exchange Commission. These companies have filed with the SEC in
2004 and are now preparing for their initial public offerings. Comparatively, there were 79 venture-backed
companies “in registration” at the end of the second quarter of 2004.

2. Analysis of Recent Quarters' IPOs
Total Avg.
Number Total Avg. Venture Venture
of Venture Venture Backed Backed
Venture Backed Backed Post Post
Backed Offering Offering Offering Offering
Quarter Number IPO's in Size Size Value Value
Ending of IPO's the U.S. ($Mill) ($Mill) ($Mill) ($Mill)
6/30/2002 35 15 1,836.1 122.4 5,917.6 394.5
9/30/2002 8 1 30.0 30.0 153.4 153.4
12/31/2002 27 4 231.2 57.8 523.8 130.9
3/31/2003 5 1 77.2 77.2 147.8 147.8
6/30/2003 5 2 164.0 82.0 695.3 347.6
9/30/2003 20 9 732.8 81.4 3,064.5 340.5
12/31/2003 52 17 1,048.7 61.7 4,349.9 255.9
3/31/2004 42 13 2,721.1 209.3 10,575.0 813.5
6/30/2004 58 29 2,077.8 71.6 8,930.4 307.9
9/30/2004 64 24 3,225.6 134.4 29,596.8 1,233.2
Thomson Venture Economics & National Venture Capital Association
Q3 Industry Breakdown
Number of
Venture Total Venture
Backed Backed
IPO's in the Offering Size
U.S. ($Mil)
Industry
Internet Specific* 5 1,997.6
Communications/Media 3 257.3
Computer Software 3 223.6
Technology
Computer Hardware 1 93.0
Semiconductor 1 36.0
TOTAL 13 2,607.4
Medical/Health 5 181.9
Life Sciences Biotechnology 3 198.1
TOTAL 8 380.0
Non-high Technology 3 238.2
Other
TOTAL 3 238.2
* Includes $1.7 billion Google IPO
Index Year to One Year Three Five Year Ten Year
Value Date Return Year Return Return
Return
539.07 -0.7% 13.6% 8.9% -9.6% 6.9%
PVCI
1,114.58 0.2% 11.9% 2.3% -2.8% 9.2%
S&P
1,896.84 -5.3% 6.2% 8.2% -7.1% 9.5%
NASDAQ

3. 10,080.30 -3.6% 8.7% 4.4% -0.5% 10.1%
DOW
Thomson Venture Economics & National Venture Capital Association
The Thomson Venture Economics Post-Venture Capital Index (PVCI) is a market cap weighted index of
the performance of stock of all venture-backed companies taken public over the last 10 years. As the chart
indicates, the PVCI has outperformed the public markets over one and three years, but has lagged over five
and ten years.
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directories to conferences, journals, newsletters, research reports, and the VentureXpert™ database. For
over 40 years, Venture Economics has been tracking the venture capital and buyouts industry. Since 1961,
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The National Venture Capital Association (NVCA) represents approximately 450 venture capital and
private equity firms. NVCA's mission is to foster greater understanding of the importance of venture capital
to the U.S. economy, and support entrepreneurial activity and innovation. According to a 2004 Global
Insight study, venture-backed companies accounted for 10.1 million jobs and $1.8 trillion in revenue in the
United States in 2003. The NVCA represents the public policy interests of the venture capital community,
strives to maintain high professional standards, provides reliable industry data, sponsors professional
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visit www.nvca.org.