Last week was the kind of week the technology IPO market needed to get going again.

All three of the tech startups lined up to price did so successfully. And when their shares hit the market, they rose. The lucky trio were:

1) DivX - Original pricing range went from $12-$14 to an offer price of $16. Shares rose 22% to $19.50 in the first day of trading. Raised $145 million. Market capitalization was $550 million.
2) CommVault - Priced at the top of the original pricing range of $12.50 to $14.50. Shares rose 17% to $17 per share. Raised $161 million. $700 milion market capitalization.
3) Riverbed Technology - Original pricing range of $7 to $8.50 rose to an offering price of $9.75. Shares rose 57% on the first day of trading to closed at $15.30. Raised $85 million. $985 million market capitalization.

This doesn't open the floodgates. But, it does mean that profitable companies with strong business models and significant barriers to entry can now achieve liquidity on a major US exchange. As long as tech stocks remain stable for the next three months, the number of tech IPOs in the second half of 2006 will certainly eclipse the 17 that were completed in the first half. That's good news for venture capitalists.

For more on tech IPOs, see:
Eric Risley
The Deal
Paul Kedrosky

Tags: ipo, divx, vc, venture+capital.