PIPE-line Also Down
By David Feldman at 14 January, 2009, 8:39 am
PrivateRaise.com, which publishes industry data about the PIPE industry, released more sobering news. First, the total number of PIPEs last year was the lowest since 2003 (there were about 1100 deals). There were about $123 billion in PIPEs in 2008, but only $19 billion were PIPEs for companies with less than $1 billion market capitalization. It is great that larger companies have seen the benefits of PIPEs, but over 80% of the deals are smaller companies, and their total is down. And of course more deals are being done as convertible preferred or convertible debt vs. common stock, so the investors are better protected.
Experts are predicting an upturn starting around the second quarter of this year. Fingers are triple crossed…
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