Articles

08/14/2007

Venture Financing Report—August 2007

One of the questions we are frequently asked is, "Are there differences in venture capital financing terms from one part of the country to another?" To help answer that question we sorted our data from the last six quarters into two regions - the East Coast (New York City, Boston, Reston and Washington, DC) and the West Coast (California).

In looking at the data, one of the first differences that stands out is the different liquidation preferences between regions. The East Coast has witnessed a relatively steady decrease in deals with a simple 1X liquidation preference over the last vseveral quarters. However, in the last three quarters we have seen an increase in deals with multiple liquidation preference. By contrast, deals on the West Coast have seen liquidation preference terms remain fairly steady over the last six quarters.

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