Venture Financing Report - Q1 2013
Cooley LLP is pleased to present our findings on venture financings for Q1 2013, which can be found by clicking on the PDF link below. This report provides a summary of data reflecting our experience in venture capital financing terms and trends. Information is taken from transactions in which Cooley served as counsel to either the issuing company or the investors.
Overall, our data pointed to a quarter marked by decreasing deal volumes and aggregate dollars raised. Median pre-money valuations decreased across all deal stages with the exception of Series A transactions. In fact, valuations for Series A deals rose to a level not seen in over a decade. We also saw a slight decrease in up versus flat/down rounds from the prior quarter. Up rounds represented 75% of all financings in Q1. Additionally, the percentage of deals structured in tranches spiked in Q1 and the percentage of recapitalization transactions also increased. Deal terms in Q1 2013 moved away from the company-friendly terms we observed through much of 2012. We observed increases in the use of participating preferred and pay-to-play provisions in Q1, compared to the prior quarter. The data also pointed to increased utilization of greater than 1x liquidation preferences in early stage transactions during the quarter.
We hope you find this Report informative. Please let us know what other information you would find useful by contacting any of the Cooley partners listed at the end of the report or your local Cooley counsel.
Related contacts
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.