Envivio, a US-based provider of video-over-internet protocol, has postponed its initial price offering (IPO) due to "market conditions", days after online vacation-rental company HomeAway floated at the top of its range.
The conflicting signals for corporate venturing-backed floations came among wider concerns about public equity capital markets.
Envivio had planned to raise $69m in its Nasdaq flotation. News provider DMcA said Envivio had raised $72m over the past decade. It has venture capital firm HarbourVest Partners owning 20.3%, Crescendo Ventures (19.1%), Crédit Agricole Private Equity (11.3%), Saints Capital (8.7%) and Atlantic Bridge (7.9%).
Its other investors include corporate venturing units Innovacom (France Telecom), Intel Capital and NTT.
By contrast, the $216m IPO of HomeAway had targeted a range between $24 per share and $27 per share, which gave the company a market capitalisation of just under $2.2bn at the top end, only to see shares climb 49% to $40.21 in its first day of trading on Nasdaq.
The company offered 5.93 million shares, while selling shareholders sold 2.07 million having provided $504m since launch.
News provider Tech Crunch said last year Google invested in Homeaway, which uses characters from National Lampoon films, at an about $1.4bn valuation to take a circa $25m stake. Tech Crunch said Google had not invested money in the company, but it instead bought the shares from another backer. Unlike other backers, US-based venture capital firms Austin Ventures, Redpoint Ventures, Technology Crossover Ventures, Institutional Venture Partners and Trident Capital, Google owns less than 5% of the company.
Last month, China-based media company Phoenix New Media also saw its share price rise by 34% in its first day of trading on the New York Stock Exchange (NYSE).
Phoenix priced its shares at $11 each but they increased to $14.75 per share.
Beijing-based Phoenix New Media sells media content for the Internet, mobile devices and TV. In 2010, it recorded a $25.1 million loss on total revenue of $80.1 million.
In November 2009, Phoenix raised $25m from Intel Capital, which owns 10.5%, Germany-based media group Bertelsmann’s Asia Investment Funds (3.16%) and family office Morningside Ventures (12.6%). Phoenix Satellite Television retains 64.8% pre-IPO.
At least 720 companies, including Groupon, the online coupon group backed by Germany-based publisher Holtzbrinck’s corporate venturing unit, have announced plans between April and June to raise more than $67bn through IPOs, according to news provider Financial Times using Bloomberg data.
IPOs raised $102bn over the first half of the year, including $56.8bn in the second quarter, the Financial Times added quoting Thomson Reuters data, despite a fall in some major indices.