Category Archives: ipo

NVCA Four Pillar Plan to Restore IPO Market

The National Venture Capital Association (NVCA) annual meeting kicks off today with a great mix of sessions and speakers. At a policy level, NVCA Chairman Dixon Doll is also announcing a four pillar plan to help increase liquidity via IPOs.

Pillar I – Ecosystem Partners: consolidation and attrition has limited the number of mid-tier accounting/legal/i-banking firms who can help smaller companies reach the public markets — at least at a manageable cost. The NVCA is encouraging a new set of ecosystem participants and partnering with the largest players in the industry to do the job better.
Pillar II – Enhanced Liquidity Paths: The NVCA is endorsing alternative distribution between buyers and sellers that grows buyers and their commitment to holding long-term. One example provided was Inside Venture, which pre-screens cross-over investors who agree to hold long-term.
Pillar III – Tax Incentives: From globally competitive capital gains rates, to carried interest taxation, to one-time IPO-related tax incentives; the NVCA advocates a suite of tax initiatives that will encourage investment and company growth.
Pillar IV – Regulatory Review: Sarbanes-Oxley and a host of other regulatory moves have created various unintended negative consequences and costs for smaller venture-backed companies. The NVCA advocates a tiered approach to regulation to recognize the different circumstance of large and small public entities.
The full NVCA presentation can be viewed below. It contains a good set of data behind these recommendations, including the impact venture-backed companies have on our economy (12.1M jobs created).

Mako Surgical Files for $68M IPO

Ft Lauderdale-based Mako Surgical filed for a 5.1 million share public offering, with a price target of $14-16/share. Mako is led by Maurice Ferre and has a revolutionary approach to knee restoration — utilizing robot guidance for more precise operations, enabling quicker recovery and, ultimately, better outcomes.

I really liked Maurice and his company when we first saw it, but we didn’t pull the trigger alongside Tony Natale (formerly MDS, now at Prism). Mako proceeded to raise $50M of private equity and a fast path to the big show. Congrats to Maurice, Tony and the whole Mako team!