Passage of the JOBS Act and new highs in the stock market have yet to open the door any wider for venture capitalists to exit investments through initial public offerings. In fact, a new report from the National Venture Capital Association and Thomson Reuters finds venture-backed exits through IPOs hit a three-year low.

The study found venture-backed companies raised a total $672 million in eight IPOs during the first quarter of 2013. That represents a 52 percent drop in the amount raised compared to the fourth quarter of 2012. The number of venture-backed companies that completed IPOs during the quarter was the same as in the fourth quarter of 2012.

M&A continues to be a preferred exit, but activity there fell to its lowest level since 1995 in terms of number of disclosed deals. A total of 77 venture backed companies agreed to be acquired during the first quarter of 2013. Ten of those deals had an aggregate value of $984.3 million, a 73 percent decrease from the first quarter of 2012.

“First quarter IPO and acquisitions activity is often subdued as year-end reporting and forward planning take priority, but this year political, taxation, and sequestration concerns weighed even more heavily on the exit market for emerging growth companies.” says John Taylor, head of research for the National Venture Capital Association.

Taylor, though, says with public market valuations up and financial statements being finalized, companies are starting the process toward an exit. “Despite having waited for the right opportunity to move forward, the 2013 class of companies that goes public or gets acquired will have to be solid,” he says. “Barring significantly adverse events, we expect stronger volume in the second and third quarters.”

Much of the activity for venture-backed exits through IPOs occurred in the information technology sector. A total of six of eight venture-backed companies that went public during the first quarter were information technology-related.

There are 25 venture-backed companies currently filed publicly for IPO with the U.S. Securities and Exchange Commission. That does not include confidential registrations filed under the JOBS Act, where the majority of venture-backed companies are now likely to file.

Among M&A exits, information technology companies also dominated as they accounted for 58 of the 77 deals for a total of $360 million. Nevertheless, life sciences companies led all venture-backed merger activity, with $594.3 million in deals. The largest venture-backed M&A transaction during the quarter was in the biotechnology sector, with Illumina’s $350 million purchase of Verinata Health, a developer of non-invasive tests for fetal chromosomal abnormalities.

Deals with disclosed values between one and four times the venture investment, accounted for 90 percent of the total disclosed transactions during first quarter of 2013. Venture-backed M&A deals returning less than the amount invested accounted for 10 percent of the quarterly total.