Cooley Report Highlights Full Year and Q4 2009 Venture Capital Financing Trends
Marked Q4 Increase in Up Rounds and Other Indicators Stoke Optimism
Palo Alto, Calif. – Feb. 18, 2010 – Cooley Godward Kronish LLP today released its most recent report on venture capital financing market terms. The report analyzes Cooley's venture capital transactions nationwide that closed during the fourth quarter of 2009, with comparisons to the first three quarters of 2009 and prior years. The analysis is based on 376 completed deals across the United States totaling approximately $3.82 billion during 2009, including 98 completed deals totaling approximately $1.1 billion during the fourth quarter.
Highlights from the fourth quarter of 2009 include:
• The percentage of up rounds in the fourth quarter (45 percent) saw a considerable increase compared to the first three quarters (26 percent)
• The percentage of down or flat rounds continues to outpace the number of up rounds
• While still below recent historical annual averages, fourth quarter median pre-money valuations increased for all series as compared to the prior three quarters of 2009
"The increases in the number of deals, average pre-money valuations and aggregate dollars raised in the fourth quarter point to a potentially improving landscape for venture financing deals," said Craig Jacoby, head of Cooley's Emerging Companies practice.
Cooley's Private Company Financings Report is published quarterly and is based on private company transactions in which Cooley served as counsel to either the issuing company or the investors. A complete version of the report is available here.
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