Bubble alert? IPOs, VC deals down

New report says the value of VC deals has declined, while another shows that the IPO market for VC-funded companies is nonexistent.

I'll say this upfront: I'm not a good predictor of economic events. That's why I'm a journalist and not on Wall Street. Well, that and I don't like getting up early.

That said, those leery about Web 2.0 looking a lot like Web 1.0 have even more to worry about. As noted earlier this morning, there were no VC-backed companies that went public last quarter , according to a new report from Dow Jones VentureSource.

A second report, looking at the media, information, and marketing services areas showed that, although the number of VC deals in the first half of the year inched up from a year ago, the value of such deals plummeted. There were 404 deals in the first six months of 2008, according to the Jordan Edmiston Group, valued at an average of $23.16 million. That compares to 397 deals in the first half of 2007, with an average value of $65.77 million.

"M&A activity for the first half of 2008 was increasingly cloudy," Adam Gross, a Jordan Edmiston vice president, said in a statement. Gross did point to several bright spots, including in online media and in transactions of less than $1 billion.

Am I onto something or just over-reaching?

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About the author

    During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.

     

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