Robust merger and acquisition activity will provide consistent investment opportunities in the venture debt space, executives at Hercules Capital said on Thursday’s second-quarter earnings call, but a growing scepticism of “unicorn” valuations will likely stall venture-backed initial public offerings.
Overall IPO activity of venture-backed private companies “remains stagnant” and “not anywhere near where they should be”, said Manuel Henriquez, the business development company’s founder and chief executive officer.
