1. Contacts:
Jeanne Metzger, NVCA, 703-524-2549 ext. 116, jmetzger@nvca.org
Josh Radler, Thomson Venture Economics, 973-353-7139, Joshua.radler@tfn.com
VENTURE BACKED IPO MARKET IMPACTED BY ECONOMIC UNCERTAINTY
Only One Venture Capital Backed Company Goes Public in First Quarter of 2003
Newark, NJ—April 1, 2003--One US- based venture-backed company, Accredited Home Lenders,
Inc., raised $77.2 million through an initial public offering (IPO) in the first quarter of 2003,
according to Thomson Venture Economics and the National Venture Capital Association. This figure
represents a decline from the fourth quarter of 2002 when four US based venture-backed companies
went public. It is also down from a year ago when four companies went public during the first
quarter of 2002.
Venture-backed companies were not alone in feeling the impact by the continued struggling
economy. Overall the total US IPO market only saw three companies go public during the first
quarter of 2003 raising $295.8 million dollars compared to twenty-six IPOs in the fourth quarter of
2002 raising $3.4 billion.
Accredited Home Lenders, Inc., which provides wholesale mortgage services received financing from
established venture capital firms Enterprise Partners and Crosspoint Ventures. The Company offered
9,650,000 common shares at an offer price of $8 dollars per share and the lead manager on the
issuance was the Friedman Billings Ramsey Group.
Analysis of Recent Quarters' IPOs
Total Avg.
Number Venture Venture
of Total Avg. Backed Backed
Venture Venture Venture Post Post
Backed Backed Backed Offer Offer
Quarter Number IPO's in Offer Size Offer Size Value Value
Ending of IPO's the U.S. ($Mill) ($Mill) ($Mill) ($Mill)
44 20 1,505.5 75.3 9,182.3 459.1
12/31/2000
19 8 500.1 62.5 2,462.7 307.8
03/31/2001
29 8 662.5 82.8 4,047.6 505.9
06/30/2001
11 5 279.9 56.0 994.6 198.9
09/30/2001
29 14 1,447.7 103.4 5,912.4 422.3
12/31/2001
21 4 376.3 94.1 2,398.0 599.5
03/31/2002
40 14 1,336.1 95.4 5,339.1 381.4
06/30/2002
7 1 30.0 30.0 153.4 153.4
09/30/2002
26 4 231.2 57.8 523.8 130.9
12/31/2002
3 1 77.2 77.2 147.8 147.8
03/31/2003
Thomson Venture Economics/National Venture Capital Association

2. The drop in venture-backed IPO activity comes at a time when the public markets continue to
struggle amidst substantial economic uncertainty. This ambiguity coupled with a precarious global
climate has created an instability that many in the venture industry are waiting out.
Jesse Reyes, Vice President of Thomson Venture Economics, states quot;The venture industry has been
looking for signs of life in the exit market. For now, it is not the IPO market. Hopefully the trade
sale exit market will compensate.quot;
“Venture capitalists continue to take a prudent and patient approach regarding potential exits for their
portfolio companies,” said Mark Heesen, President of the National Venture Capital Association. “The
combination of a struggling economy and now a war of uncertain length fosters an environment that
is not that conducive for young start-ups to go public. The venture community is committed to
supporting their portfolio companies and building sustainable businesses, recognizing that exit
opportunities will inevitably emerge for solid companies.”
The National Venture Capital Association (NVCA) represents over 470 venture capital and private
equity organizations. NVCA's mission is to foster the understanding of the importance of venture
capital to the vitality of the U.S. and global economies, to stimulate the flow of equity capital to
emerging growth companies by representing the public policy interests of the venture capital and
private equity communities at all levels of government, to maintain high professional standards,
facilitate networking opportunities and to provide research data and professional development for its
members. For more information visit www.nvca.org.
Thomson Venture Economics, a Thomson Financial company, is the foremost information provider
for equity professionals worldwide. Venture Economics offers an unparalleled range of products from
directories to conferences, journals, newsletters, research reports, and the Venture Expert™ database.
For over 35 years, Venture Economics has been tracking the venture capital and buyouts industry.
Since 1961, it has been a recognized source for comprehensive analysis of investment activity and
performance of the private equity industry. Venture Economics maintains a long-standing relationship
within the private equity investment community, in-depth industry knowledge, and proprietary
research techniques. Private equity managers and institutional investors alike consider Venture
Economics information to be the industry standard. For more information about Venture Economics,
please visit www.ventureeconomics.com.
Thomson Financial
Thomson Financial (www.thomsonfinancial.com), is a US$1.6 billion provider of information and
technology solutions to the worldwide financial community. Through the widest range of products
and services in the industry, Thomson Financial helps clients in more than 70 countries make better
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applications and tools to more than 20 million users in the fields of law, tax, accounting, financial
services, higher education, reference information, corporate training and assessment, scientific
research and healthcare. The Corporation reported 2001 revenues of US$7.2 billion and its common
shares are listed on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).
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