Earlier this year, the initial public offering hadn't even been on the radar screen as a fundraising tool for young technology companies. But with seven successful IPOs out the door so far this year, and six of them tech companies, the option of going public is just starting to work its way into discussions among board members, executives and the bankers who advise them.

"Companies are starting to entertain the notion of IPOs," says Jevan Anderson, managing director of M&A at RBC Capital Markets Corp. in San Francisco. "Three months ago, there was never going to be another IPO, ever. Now it doesn't seem as far-fetched."

But what does this mean for tech startups at large? With this new exit possibility, do they have new leverage when negotiating with potential buyers?

Not yet, says America's Growth Capital LLC's Rex Sherry.

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"At this rate, we are talking about 25 to 30 IPOs a year, and that's not enough to support the VC community, nor is it enough to give credibility to the idea of a competing alternative," he says. "A potential buyer won't take a private company seriously until he files."

And filing an S-1 is hardly something to take lightly, he adds. With advisers and other fees, director and officer liability insurance and additional costs, the process costs well over $1 million, Sherry says.

"It's still too early to tell," says Cisco Systems Inc.'s Charles Carmel. From his company's perspective, an IPO is just another stage in the life cycle of a company and simply provides more incentive for venture capitalists to fund innovation, he says. Besides, while most of Cisco's acquisitions are of private technology companies, it isn't shy about buying publicly traded companies.

"There are multiple options for young companies to bring in capital, and that is good for us," Carmel says. "We're keeping our fingers crossed like anyone else."