In summary, 2008 saw 6 venture-backed IPOs (down 93% ) and 260 merger & acquisition deals (down 27%). And as you might expect, the prospects aren’t that great for 2009.
So what does this mean for your new startup company? It’s not good, but at some point you just need to turn off the news and develop your product. If you are just fresh into your startup, your exit isn’t coming along for some time. But in the meantime, anticipate that a VC firm will give you less than you might expect and that the terms of their investment will be more investor-favorable.
If you would like to do further reading on venture-backed exits in 2008, the National Venture Capital Association released a report last week, which you can find in PDF format here.