Time to start thinking about the IPO market

For all the talk of how Sarbanes-Oxley have made IPOs in the U.S. a bad deal, 2006 wasn't a bad year for small-company IPOs. In fact, it was a good year: 58 venture-backed IPOs made it to market versus 56 in 2005. Those deals raised $5.3 billion, up 18 percent from the previous year. Renaissance Capital titled its annual review of IPOs "The Return of Traditional Growth IPOs." Just under 40 venture-backed companies are in the IPO pipeline, compared with 16 a year ago. My feeling is that more companies will test these waters, especially with Sarbox reform for small companies on the horizon. While London or other markets may be cheaper, the benefits of U.S. listing are obvious. It's nice to hear some overseas execs say the Sarbox-related costs of a U.S. offering is money well spent.

For more:
- read the Investor's Business Daily article