by Mielle Sullivan, Janus Networks
It has been a slow year for IPOs, especially Venture backed IPOs, but LogMeIn excited investors when it went public on Wednesday. The offering of the remote access company based in Woburn, Massachusetts was so anticipated that analyst John Fitzgibbon said the IPO “should blow the socks of people.”
LogMeIn offered its shares at $16 apiece, but closed its first day with shares at $20.02, up 25%. Such a good opening day scored nearly 10x returns for the four venture firms that together invested $20 million dollars in the company. LogMeIn now has a market cap of $428 million.
Founded in 2003, LogMeIn has poised itself to profit from an increasingly mobile and decentralized workforce. Mobile broadband growth in particular has accelerated this trend, and adoption rates will only continue to speed up. As the need for remote access intensifies, companies have began to look for tools proactively — all of this is very good for LogMeIn.
Some analysts believe today’s success could prompt dormant VCs to start investing in technology again. Despite a slow year overall, every tech related IPO in 2009 has gained in the first day of trading. Innovation, it seems, always draws dollars, even in tough times.
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