Posts Tagged ‘guidewire’

Here is some good insights from Chris O´brien at SiliconBeat.

“This morning my inbox contained the latest report from Renaissance Capital. It has some hopeful news about IPOs, but not necessarily for Silicon Valley.

First, the good news: ”After an uptick in filing activity, there are 67 companies in the active IPO pipeline, up from 29 in March 2009.”

As far as Silicon Valley is concerned, that’s about as far as the good news goes. Now, here’s the bad news.

According to Renaissance:

“Today, the tech, healthcare and retail growth stories that have driven past market revivals have been conspicuously absent from the latest wave of  IPO hopefuls.  This makes sense, given the historic consumer shut-down and the anti-business and investment rhetoric emanating from Washington.  In their place, there is a pool of unusual candidates shaped by an era of cheap credit and  the unprecedented mortgage crisis that followed.  At least for the near term, it appears that the IPO market will be dominated by opportunistic investment vehicles and businesses from the mid-decade buyout bubble.”

And his post concludes:

Currently, there are seven venture-backed companies in the IPO pipeline. Could there be more? Renaissance gives a round up of likely suspects:

“Besides the social networking giants Facebook, Twitter and LinkedIn, there have been several other rumored IPO candidates from the VC community as the market began to recover in early March.  Near-term, we expect the majority of new venture-backed IPO filings to come from the technology and alternative energy sectors.  Potential IPO prospects from each of these industries include online games company Zynga, ethernet network equipment provider Force10 and property & casualty software maker Guidewire in the technology sector, and smart grid company Silver Spring, solar panel maker Solyndra and electric car manufacturer Tesla Motors in alternative energy.”

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Here is an intresting article from Money morning.

“Goldman Sachs Group Inc.’s (NYSE: GS) initial public offerings (IPO) guru Tom Tuft has joined Bruce Wasserstein’s Lazard Ltd. (NYSE: LAZ) as chairman of Global Capital Markets Advisory and vice-chairman of its U.S. investment banking, in what could be a sign that the market for IPOs is thawing.

Tuft, a 33-year Goldman vet who co-founded its equity capital markets business in 1985 and became its chairman in 2004, was involved in several high-profile IPOs, including those of The Estee Lauder Companies Inc. (NYSE: EL) and RJR Nabisco Inc. He also advised Lazard on its own IPO in 2005.

A slowdown in mergers and acquisitions has prompted Lazard to expand its equity capital markets and restructuring operations, working on nine of the top 10 bankruptcies this year, Bloomberg News reported. Capital raised by IPOs in the first half of this year was $11.4 billion, down 85% from the same period last year according to data compiled by Bloomberg.

“There is demand for companies to come public,” David Menlow, president of IPOFinancial.com told Bloomberg. “The fact that we haven’t seen that many is not an indication that companies are not out there ready to come public.”

The article continues.

The “Silicon Valley Six”

“An informal poll of venture capitalists and others conducted by Reuters yielded six successful companies with revenue of $100 million or more in Silicon Valley that are ripe for acquisition or an IPO, excluding social networking sensations Facebook Inc. and Twitter Inc. The news service dubbed the companies the “Silicon Valley Six,” which were chosen out of 34 citied in sectors ranging from alternative energy to video games.

The top four companies found were social network LinkedIn Corp., solar panel maker Solyndra Inc., smart grid company Silver Spring Networks and Zynga Inc., which develops games that run on social networks like Facebook or New Corp.’s (NYSE: NWS) MySpace.

The other two are Guidewire, which develops software for property and casualty companies, and LiveOps, which operates call centers from contractors that work from their homes.

“They are exciting because they…demonstrate what is possible with venture capital,” Sharon Wienbar, managing director of Scale Venture Partners told Reuters. “These are companies that have proven a new, attractive business model that works big in spaces.”

Venture capitalists’ rule of thumb for declaring a company ripe for an IPO is that a company must have  $100 million in sales and have a capitalization of about $1 billion in order to have enough money to meet the reporting structures of the Sarbanes-Oxley act.

“The market is in the early stages of being back,” LiveOps Chief Executive Officer Maynard Webb said. “The market is ripe and open today for great companies.”

While not mentioned in Reuters’ “Silicon Valley Six,” one private company that’s making waves in Silicon Valley is PopCap Games Inc., which publishes and develops easy-to-play, accessible “casual” video games.”

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