Toolkit infatuation

The amount of money being thrown at toolkit IPOs in 2000 still reflects the genomics craze that began in the fourth quarter last year. So far this year, toolkit companies are beating up product IPOs in aggregate raised, average money raised per deal, total deals, post-money valuation, and aftermarket performance.

Of the 49 NASDAQ-listed IPOs this year, 28 fall into the toolkit category, the majority of which are companies offering the promise of value creation from the genetic code. The toolkit group has raised $2.8 billion, $900 million more than the $1.9 billion raised by product IPOs. The average toolkit deal is raising $100.6 million, $9.4 million more than its product counterpart; and the average toolkit company is going out valued at $431.2 million, $14.4 million above the product plays...