Venture Financing Report - Q3 2015

Late Stage Valuations Surge as Deal Volumes Plateau

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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.

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