The Floatation Equation

Credit market woes hurt Wall Street's IPO machine

July 14, 2008

If the process of seeking out and seeding a young business is akin to a farmer raising crops and caring for them, then the trip to the public markets is a venture capitalist's own autumn harvest. These days, though, harvesting a young business has gotten tougher because of the credit market problems that started last summer within a subset of the US mortgage finance market. In the second quarter not one company was brought to the public markets by Wall Street brokerages that had been seeded by venture capitalists.

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