Venture Financing Report - Q3 2015

Late Stage Valuations Surge as Deal Volumes Plateau
November 5, 2015

View our interactive data visualization on Cooley GO

Overall financing activity in the third quarter of 2015 remained strong, continuing a trend from prior quarters. In Q3 2015, Cooley handled 140 disclosable deals, representing more than $3.2 billion of invested capital. Median pre-money valuations climbed in Q3 across all deal stages, most notably in later stage deals. The median pre-money valuation for Series D+ deals reached $400 million during the quarter. The percentage of deals with a median pre-money valuation greater than $100 million reached 35% of Q3 deals, a level not seen in over six years. The percentage of up rounds remained strong, making up more than 90% of deals during the quarter. Deal terms reflected a company-friendly environment, as the utilization of fully participating preferred and pay-to-play provisions both decreased from the prior quarter.

This quarterly summary provides data reflecting Cooley's experience in venture capital financing terms and trends. Information is taken from a subset of the transactions in which Cooley served as counsel to either the issuing company or investors.

View our latest report in pdf format or visit Cooley GO to view the interactive visualization.

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.