Q2 Venture Financing Report Shows Higher Deal Volume and Dollars Raised
Palo Alto – August 2, 2017 – Cooley’s Q2 2017 Venture Financing Report finds both deal volumes and aggregate dollars raised increased from prior quarters. Median pre-money valuations increased in Q2 across all deal stages. In Series A deals, pre-money valuations reached $22 million, a level not seen since the report commenced more than ten years ago.
Overall, deal terms during the quarter trended toward favoring entrepreneurs. Deals with full participating liquidation preferences decreased, as well as deals including pay-to-play provisions.
“Seed capital continues to be abundant,” said Cooley partner Matthew Bartus, who co-chairs the firm’s emerging companies practice. “This has enabled companies to delay their Series A longer, allowing them to develop stronger revenue, which is a likely contributor to the surge in Series A pre-money valuations that we saw.”
The report is based on disclosed transactions during the second calendar quarter of 2017, in which Cooley served as counsel to either the company or the investor. PitchBook recently ranked Cooley as the #1 most active law firm for VC deals in this quarter.
Visit Cooley GO to view the fully interactive data visualization and to read a Q&A with GGV Capital managing partner Hans Tung.
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