Generally, the IPO and M&A markets are natural partners, but there are times when they can appear completely out of step with each other.  In the US Technology sector we seem to be in one such phase now. 

Tech IPOs are currently at a record low number - there has only been one venture backed IPO in the US this year so far, yet, as highlighted below, US Technology Trade acquirers have never been more active. We have definitely seen evidence of this in US interest in our portfolio companies. At some point I would expect the two cycles to get back in step again, with IPO markets regaining their appetite for venture-backed tech. The catalyst will be if VCs can convince sceptical investors the highly-valued businesses they bring to market are a higher quality threshold than recent vintages.