Where are VC exits headed

There were no venture-backed IPOs in the 2nd Quarter of 2008, the first time in a very long time that this has happened. Since IPOs typically provide the highest valuations, and our industry raises $25 billion a year, this is definitely a disturbing data point. CardioNet was the last company to go out on March 19. The last time we had a quarter-long IPO drought was from December 2002 to March 2003. We've had twelve companies back off going public. Of the six that got out, four were in healthcare.

The good news is that biotech is enjoying a robust M&A market. Several companies have been acquired at excellent valuations.