Notable Private Equity-Backed Venture Capital Exits - 2012 YTD

by Jonathan Parker

  • 28 Jun 2012
  • PE

On Monday of this week, Microsoft announced the acquisition of Yammer for $1.2bn in cash. Yammer, a provider of enterprise social networks, was founded in 2008 and received a total of $142mn in private equity-backed venture capital financing. The first funding round was announced in January 2009 and the most recent in February 2012. The sale of the company to Microsoft provides investors with a lucrative exit, representing the second largest in the year so far.

Facebook, the world’s largest social network, raised $16bn in its IPO in May. This ranks as the largest ever private equity-backed venture capital exit, and gave the company a valuation of over $100bn at the time of listing. Facebook had raised several rounds of financing since its founding in 2004, from a range of private investors, venture capital funds, and corporate investors.

The third largest exit of the year to date was announced in April, when Facebook acquired Instagram, a mobile application developer for $1bn. Instagram, which was founded in 2010, had received just three rounds of financing totalling $57.5mn, with the final $50mn round completed just days before the announcement of its acquisition by Facebook.

Elsewhere, Kiva Systems, which provides automation technology for distribution centres, was acquired by Amazon in March for $775mn. The firm had received a small amount of financing from investors, including Bain Capital Ventures and Meakem Becker Venture Capital.

Buddy Media, a social enterprise software company, was acquired by Salesforce for $689mn in June. The company had raised a total of $90mn between 2007 and 2011 from investors such as Bay Partners, Greycroft Partners and Institutional Venture Partners.

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