Q3 Venture Financing Report Shows Lower Deal Volume and Dollars Raised
Palo Alto – November 1, 2016 – Cooley’s Q3 2016 Venture Financing Report finds slightly lower deal volumes and aggregate dollars raised compared to prior quarters.
Across industries, the data points to a decrease in median pre-money valuations across all deal stages with the exception of Series D+ transactions. A small number of large late-stage deals in Q3 drove the average median pre-money valuation for Series D+ deals to $718 million, a level not seen for more than seven years.
“The existential freakout that occurred in January and February seems like the distant past, with the lingering hangover being a clearer focus on valuation and overall funding needs from new investors,” commented Brad Feld, co-founder of Cooley client The Foundry Group, who participated in an exclusive Q&A with Cooley to discuss the report and share his views on the state of the market.
The report is based on disclosed transactions during the third calendar quarter of 2016, in which Cooley served as counsel to either the company or the investor.
Visit Cooley GO to view the interactive data visualization and to read the full Q&A with Brad Feld.
About Cooley LLP
Clients partner with Cooley on transformative deals, complex IP and regulatory matters, and high-stakes litigation, where innovation meets the law.
Cooley has 900 lawyers across 12 offices in the United States, China and Europe.
Press Coverage:
"After Months of Concern about Bursting Bubbles, VC Investment Stabilizes," TechCrunch
"Q316 State of Venture Capital Update with Cooley," FeldThoughts
"Venture Financing in Early-Stage Deals Continues to Cool," Law360
"VC Stabilizes Amidst Months of Bubbles," Venture Capital Post
"Small Number of Deals Drive Late Stage Valuations Higher," PE Hub
"Is Flat the New Up?" Mattermark
This content is provided for general informational purposes only, and your access or use of the content does not create an attorney-client relationship between you or your organization and Cooley LLP, Cooley (UK) LLP, or any other affiliated practice or entity (collectively referred to as “Cooley”). By accessing this content, you agree that the information provided does not constitute legal or other professional advice. This content is not a substitute for obtaining legal advice from a qualified attorney licensed in your jurisdiction and you should not act or refrain from acting based on this content. This content may be changed without notice. It is not guaranteed to be complete, correct or up to date, and it may not reflect the most current legal developments. Prior results do not guarantee a similar outcome. Do not send any confidential information to Cooley, as we do not have any duty to keep any information you provide to us confidential. This content may be considered Attorney Advertising and is subject to our legal notices.