One venture backed semi company filed to go public in the third quarter
Venture capitalists have pulled back their investments in semiconductor companies fearful of the slowing economy and increasing maturity of the business.
The third quarter saw just $231.6 million go into fabless and chip-design companies, down 57 percent from last year, according to the Global Semiconductor Alliance. Only 21 deals were completed, a decrease of 45 percent.
Semiconductor startups overall – a broader category that includes the hot solar sector – raised $511.7 million in the quarter, a total that fell 36 percent from the third quarter of 2007.
The alliance said the high costs of design, the slow economy and industry consolidation contributed to the soft venture market. A weak exit market likely was a factor as well. Merger and acquisition activity slipped 11 percent from the second quarter to 31 third-quarter deals. Only one venture-backed semiconductor company filed to go public: Avago Technologies.
