Telegent files for IPO as public market thaws even more

Chip design firm Telegent has filed for a $250 million public offering, capping off an exciting few days of IPO action. Last week, network security provider Fortinet sold 12.5 million shares of common stock for $12.50, raising just over $156.2 million. And web marketer QuinStreet filed for its own $250 million IPO.
Based in Sunnyvale, Calif., Telegent provides designs for semiconductors that allow people to watch live television broadcasts on their computers and phones. It sells them to other companies, many based in China, that actually assemble them. It has raised $50 million to date from New Enterprise Associates, Walden International, Index Ventures, Northern Light Venture Capital and Enterprise Partners Venture Capital. Both NEA and Walden hold 24 percent of the company right now. Index has 12.8 percent.
Fortinet wowed the market last Wednesday, closing well above the $9 to $11 projected share price. Planning to use the money for product development and to fuel a potential acquisition strategy, the company, also based in Sunnyvale, was backed by Redpoint Ventures (with 15.2 percent of the company), Meritech Capital (with 10.8 percent), Acorn Campus Ventures, DCM, WI Harper Group and Defta Partners.
Redpoint reportedly made $11 million from the sale, while Meritech bagged $7.5 million. They will retain control of 12.4 percent and 8.9 percent of Fortinet, respectively. In August, the company made news with its acquisition of assets from Woven Systems, a fabric Ethernet provider that had raised $35 million from Goldman Sachs, Mohr Davidow Ventures and Palomar Ventures.
Later in the week, QuinStreet announced that it was filing for its own $250 million IPO, surprising analysts that saw it coming, but not for a while. Based in Foster City, Calif., the company provides marketing services to large companies, particularly in the education and financial services sectors, including DeVry.
QuinStreet is backed by Split Rock Partners (with 16.4 percent), Sutter Hill Ventures (with 10.6 percent), GGV Capital (with 7.1 percent), W Capital Partners (with 6.9 percent), Catterton Partners (with 5.9 percent) and Partech International (with 5.5 percent).
None of the three companies share investors in common — which says two things: First, that the public exit market is finally opening up for a diversity of firms, not just a chosen few; and second, that with more successful IPOs popping up next year, even more firms will feel better about investing, strengthening the economy’s rebound.