VC funding fizzled in June, says GSA

LONDON — June produced a downturn in funding activity for fabless, fabbed and semiconductor equipment companies, both by number of deals and their value, according to the Global Semiconductor Alliance. What had been a promising quarter fizzled out for both funding and IPO activity although the half-year figures compare well with 1H09, the GSA observed.

In June 2010, 10 companies raised $64.4 million, down from $197.7 million announced across 11 deals in May 2010. However, the value of two funding deals in June was undisclosed compared with none in May.

As a result the quarterly figures also showed a sequential decline. In Q2 2010 34 semiconductor companies raised $345.8 million, a dollar amount decrease of 23.8 percent from Q1 2010 and an increase of 12.0 percent compared with Q2 2009, the GSA said.

The weak June could not dim the brightness shown in the first six months of 2010 where 78 semiconductor funding deals totaled $799.6 million, an increase of 41.9 percent from $563.3 million in the same period a year before. The total number of semiconductor deals closed in 1H 2010 increased by seven year-on-year, the GSA said. LED manufacturer BridgeLux was the leading fundraiser in the first half, attracting $50.0 million in an extended fourth round of funding.

Reservations have been expressed that of those 78 semiconductor funding deals tabulated by GSA only four were first-time fundings. The vast majority of the deals are follow-on rounds for established companies.

There were no pricings of IPOs in June, but InvenSense and Inphi Corp. filed for $100 million and $115 million IPOs, respectively. Meanwhile MagnaChip Semiconductor and Telegent Systems withdrew their IPOs on June 30 and May 6, respectively, because of poor market conditions.

Related links and articles:

Global Semiconductor Association

Wafer prices, allocation up in Q1, says GSA

Gyro vendor InvenSense files IPO

MagnaChip withdraws IPO - again