Venture Financing Report - Q2 2014

Deal Activity Rises as Up Rounds Increase
August 4, 2014

Cooley LLP is pleased to present our findings on venture financings for Q2 2014, which can be found by following the 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 increased deal activity and a sharp rise in up rounds of financings. In Q2 2014, Cooley handled 87 deals representing over $1.5 billion of invested capital. Median pre-money valuations were mixed, as Series B, C and D+ deals saw valuation decreases, while Series A deals saw valuations rise to a level not seen in over a year. We also saw a spike in up versus flat/down rounds from the prior quarter. Up rounds represented 87% of all financings in Q2. Additionally, the percentage of deals structured in tranches decreased in Q2 and the percentage of recapitalization transactions also declined to just 1% of all deals. Deal terms in Q2 2014 also reflected a company-friendly investment environment. We saw decreases in the use of fully participating preferred provisions in all deal stages during the quarter. The utilization of pay-to-play provisions also declined significantly, compared to the prior 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.

View the Report