Venture Financing Report - Q4 2015

Deal Volumes Remain Strong as Valuations Cool

Overall deal activity in the fourth quarter of 2015 remained strong. In Q4 2015, Cooley handled 150 disclosable deals, representing more than $3.3 billion of invested capital. Median pre-money valuations declined in Q4 across all deal stages, with the exception of Series B transactions. The most notable decrease occurred in Series D+ deals. The percentage of up rounds remained strong at 88% of Q4 transactions. Deal terms during the quarter were mixed. The utilization of fully participating preferred provisions decreased from the prior quarter, while the utilization of both drag-along and pay-to-play provisions increased during Q4.

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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Related Contacts
Pat Mitchell  Partner Boston, New York
Dave Young  Partner Los Angeles
Justin Stock  Managing Partner – London London
Babak Yaghmaie  Partner New York
Matthew Bartus  Partner San Francisco, Singapore, Palo Alto
Craig Jacoby  Partner San Francisco
Andrew Lustig  Partner Reston
Tom Coll  Partner San Diego
Patrick Loofbourrow  Partner Singapore, Shanghai, San Diego
Mike Lincoln  Vice Chair Reston, Washington, DC