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Exit Opportunities and Valuations on the Rise & VC Fundraising Plans Remain Intact

MAVA VC Survey Results Show Continued Positive Market Recovery Outlook

(May 5, 2004, Timonium, MD) - Data released today by the Mid-Atlantic Venture Association (MAVA) indicates that private equity investors in the region are encouraged by recent activity in the Initial Public Offering (IPO) and merger and acquisition (M&A) markets, but report that they expect to exit only a small percentage of their current portfolio companies in 2004. Liquidity events such as IPOs and acquisitions by larger, perhaps public companies are the means by which private equity investors realize gains on their investments. The data from the Q1 2004 survey also points to increases in company valuations and expectations for greater investment activity in Q2 2004, while only a small percentage of investors do not plan to make new investments this quarter.

"The definitive signs of life in the M&A and IPO markets bode well for a return to sound private equity investment cycles," said Julia Spicer, Executive Director of MAVA. "Investment activity in the coming quarters is slated to modestly increase; but, investors remain vigilant about making prudent investment decisions, completing extensive due diligence and maintaining their transaction timelines despite rising valuations and term sheet competition."

The venture capital survey is part of MAVA’s ongoing efforts to better assess the climate for private equity investing in the mid-Atlantic region. While the purpose of other private equity surveys is to track previous investment activity, the quarterly MAVA venture capital survey is intended to gauge investor attitudes, future activity and important investment trends. The Q1 2004 survey was conducted via email to 305 member VCs using WebSurveyor, and received a 15.1% response rate.

Download the full press release, including the survey's major findings, in PDF format.

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