Venture-Backed M&A Surges.

• Author: Marshall, Jeffrey
• Position: Brief Article

Mergers and acquisitions involving firms backed by venture capital continue to soar, despite the recent turmoil in Internet and other New Economy stocks. Research by Venture Economics and the National Venture Capital Association (NVCA) found that the total value of the deals completed in the first half of 2000 topped that for all of 1999 -- $37.5 billion, compared to $35.3 billion.

The comparisons between the second quarters of this year and last year are even more striking. The number of deals rose from 53 to 69, and the value jumped to $20.4 billion from $4.9 billion. Computer software and services accounted for the largest number of deals...