Press Release

Q3 2012 Showed Slowing Deal Volumes and Lower Early-Stage Valuations

November 26, 2012

Palo Alto, Calif. – November 26, 2012 – Cooley LLP announced today that the third quarter of 2012 showed a slowing of deal volumes and aggregate dollars raised compared to the first half of the year.  The 81 deals Cooley handled in Q3 represented $960 million in invested capital.

Highlights of the report include:

  • 42% of the deals were Series A transactions, a significantly higher percentage of Series A deals compared to the prior three quarters.
  • Median pre-money valuations declined across Series A and B deals, but valuations for Series C deals rose significantly compared to previous quarters.
  • The percentage of deals with participating preferred provisions increased from the prior quarter across all deal stages, which may indicate investor caution.

A complete version of the Venture Financing Report can be found here.

About Cooley LLP

Cooley's 700 attorneys have an entrepreneurial spirit and deep, substantive experience, and are committed to solving clients' most challenging legal matters. From small companies with big ideas to international enterprises with diverse legal needs, Cooley has the breadth of legal resources to enable companies of all sizes to seize opportunities in today's global marketplace. The firm represents clients across a broad array of dynamic industry sectors, including technology, life sciences, venture capital, clean energy, real estate and retail.

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