IBM launched its Global Entrepreneur Initiative which will provide startups with no charge access to industry-specific technologies in a cloud computing environment. This program will provide access to IBM’s Research community which it invests $6 billion a year across eight labs around the world with more than 3000 people. Needless to say, IBM has some experience delivering innovative technology with almost 5000 patents in 2009 alone.
IBM’s Global Entrepreneur Initiative signals the beginning of a revival of the IPO. Another sign that the market for initial public offerings is heating up is Sunnyvale based wireless network provider for small and large enterprises named Meru Networks. The company soared after it went public at the top of its predicted price range Wednesday. Meru Networks had proposed to offer nearly 4.4 million shares for $13 to $15. It wound up selling them for $15, raising about $65 million. And once the market opened, investors drove Meru's stock price up to $19.17 at the close of trading.
Paul Bard, vice president of research for Connecticut-based Renaissance Capital, which tracks IPOs, said “Meru's first-day performance was a good sign for U.S. business, particularly the technology sector. It's a very positive performance… Meru's share price rose more than 25 percent on its first day of trading, compared with a typical increase of about 12 percent for IPOs.”
The reviving IPO market, largely dormant in 2008 and 2009, is considered vital to the health of the valley's innovation-driven economy. Several Silicon Valley companies have filed documents in preparation for Wall Street debuts:
- Tesla Motors: electric car innovator based in Palo Alto
- Solyndra: maker of thin-film solar panels in Fremont
- Force10 Networks: San Jose-based maker of data-center technology
- Reply: Internet marketing services company in San Ramon
- Telegent Systems: Sunnyvale maker of TV chips for mobile devices
- Codexis: maker of biocatalysts in Redwood City
- WaferGen Bio-Systems: a Fremont maker of gene-expression systems.
It seems The IPO is Back!