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One IPO underwriter to rule them all?

August 8, 2013: 12:41 PM ET

The more IPO underwriters the merrier.

FORTUNE -- If you're a VC-backed company planning to go public, it's best that you have at least two IPO underwriters.

That's the finding of Morgan Creek Capital Management in a recent study of offerings led by sole bookrunners versus offerings led by joint bookrunners, between 2010 and the first quarter of 2013.

Morgan Creek examined 117 offerings that priced on either the NYSE or NASDAQ, 102 of which were joint led. It found that the smaller pot of sole-led offerings priced approximately 15% higher than their counterparts, but also had greater volatility and worse overall performance.

Data for VC-backed IPOs on U.S. exchanges. 2010-Q1 2013.  Source: Morgan Creek Capital Management

Data for VC-backed IPOs on U.S. exchanges. 2010-Q1 2013.
Source: Morgan Creek Capital Management

Notable sole-bookrunner offerings in the sample included Angie's List (ANGI), Zillow (Z) and Zipcar. The full report is below:

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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