Venture Financing Report – Q3 2019 – Financing Environment Remains Robust

Despite current macroeconomic and political uncertainties, both deal volumes and aggregate dollars raised remained at historical highs in the third quarter of 2019. In Q3 2019, Cooley handled 264 disclosable deals, representing more than $7.6 billion of invested capital. Up rounds represented 87% of transactions during the quarter. Our data points to a notable increase in median pre-money valuations in Series A, B and D+ rounds, while valuations in Series Seed and C deals decreased. We also witnessed a spike in the number and percentage of deals with a median pre-money valuation greater than $100 million. Of particular note, five deals had valuations greater than $3 billion.

Deal terms during the quarter remained favorable to the company. Consistent with recent quarters, we saw less than 7% of deals with full participating liquidation preferences.

Visit Cooley GO to view the interactive visualization


Key insights from Gradient Ventures’ Anna Patterson

On asking for help from your investor: Repeat entrepreneurs ask for help more frequently. When you need help, ask for it. That’s what we are here for.

On building and retaining fans of your business: Having advocates in your customers, your employees and your board is paramount to your success. As you grow, keeping these people on board is even more important.

On company growth potential: I often ask entrepreneurs: “If your company had $30 million in the bank, what would you be doing differently?” If their answer sounds like a solid and promising growth trajectory, then why aren’t we pursuing that path?

Read Cooley’s full interview on Cooley GO.

Related Contacts
Aaron Archer Partner, London
Matthew Bartus Partner, Palo Alto
Karen Elizabeth Deschaine Partner, San Diego
Sonya Erickson Partner, Seattle
Nick Hobson Partner, Los Angeles
Stephane Levy Partner, New York
Andrew Lustig Partner, Reston
James Lu Partner, Shanghai
Pat Mitchell Partner, Boston
Danielle Naftulin Partner, Palo Alto
Brooke Nussbaum Partner, Washington, DC
Ferish Patel Partner, Hong Kong
Noah Pittard Partner, Colorado
Rachel Proffitt Partner, San Francisco
Joshua Rottner Partner, Boston
Henry Yin Partner, Beijing
Related Practices & Industries

Emerging Companies Venture Capital