Venture Financing Report - 2013 Year in Review

Valuations Climb on Mixed Deal Terms
March 6, 2014

Cooley LLP is pleased to present our findings on venture financings for 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 year marked by rising valuations and mixed deal terms. In 2013, we handled 385 transactions representing over $4.2 billion of invested capital. Median pre-money valuations climbed across all deal stages, with the exception of Series C transactions. In the fourth quarter of 2013, valuations for early-stage deals reached levels not seen in over six years. We saw another strong year in up versus flat/down rounds. Up rounds represented 71% of all financings in 2013. Deal terms were mixed during the year. The utilization of fully participating preferred provisions decreased from 2012, though we witnessed an increase in pay-to-play provisions in 2013, compared to the prior year. The percentage of deals structured in tranches also increased during 2013.

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.

View the Report