Fewer exits but more capital for venture-backed start-ups in 2011

Fewer U.S. startups saw mergers, acquisitions or IPOs last year, but the ones that did nabbed more capital than all the deals in 2010, according to a report from Dow Jones VentureSource.

There were 522 venture-backed exits last year -- a 4% slip from the year before. But together, they netted $53.2 billion – a 26% increase.

That’s because the prices paid for young companies and the amount raised in initial public offerings spiked in 2011.

The median price purchasers shelled out in merger and buyout deals was up 77% to $71 million. And the 45 companies who went public last year – including major firms such as Groupon, Zynga, LinkedIn and Pandora -- raised $5.4 billion, more than the $3.3 billion raised by 46 IPOs in 2010.

To get to that point, companies headed for IPOs raised $85 million in venture capital – up 17% compared to the year before. But they reached the exit point faster – making it in 6.5 years compared to 8.1 years in 2010.

There are 60 venture-backed companies in the U.S. currently in IPO registration.

The acquisition world followed the same trend of fewer deals raking in more capital, as 460 companies were bought for $46.4 billion, a 13% plunge in activity but a 30% monetary boost compared to 2010.

“Companies are benefiting from lower start-up costs by taking capital farther toward a larger acquisition,” said Jessica Canning, Dow Jones VentureSource’s global research director, in a statement.