February 19, 2014 - There were 3,995 venture capital deals in the US totaling $29.4B in 2013, a 4% annual increase in number of deals and a 7% increase in dollars invested. Deals in Q4 2013 totaled 1,077 with $8.4B invested, which was a 4% increase in deals and 6% increase in dollars over Q3 2013 and represented a 1% increase in deals and 5% increase in dollars on a rolling four quarters basis. First time financings in 2013 represented 33% of deals and 17% of dollars, compared to 33% and 16% in 2012. Consequently, first time financings increased 3% by deals and 14% by dollars year on year.
February 5, 2014 - The 10 year time horizon of the US Venture Capital Index ® by Cambridge Associates LLC continued its improvement in Q3 2013 to 8.58%, approximately one point higher than the three major public indices. While shorter-term performance slightly lags the public indices, longer-term performance significantly exceeds the public markets. As expected, the Late Stage US Venture Capital Index outperforms the Early Stage Index in the shorter hold periods, while the Early Stage Index outperforms over the longer time horizons.
January 22, 2014 - In Q4 2013, 49 US venture capital funds raised $4.9B. While this was the strongest quarter by dollars raised since Q3 2012, 2013 was the weakest annual fundraising period since 2010. Number of funds raised fell 11% from 2012, while dollars raised fell 15%. Average fund size also dropped 4% to $90MM.
January 22, 2014 - In Q4 2013, there were 81 venture backed M&A transactions with $5.3B in disclosed deal value. While disclosed deal value increased this quarter, the number of transactions and total disclosed deal value are down 23% and 35%, respectively, over 2012. However, disclosed deal value is highly dependent on the mix of M&A deals disclosed and the number of deals disclosed is similarly down 31% from 2012.
January 22, 2014 - With the calendar turned to a new year, we eagerly gaze to the opportunities of 2014 and what lies ahead for the fixed income markets. On the whole, there is consensus that this new year will see higher interest rates across the spectrum as the US economy expands more rapidly, the Federal Reserve tapers its asset purchase program and investors seek higher returns in other asset classes. However, exactly how much higher interest rates will be at year end is quite uncertain; below we share our thoughts on why the US economy will continue to perform well and how the Fed will handle raising the Federal Funds rate.
December 18, 2013 - On the short list of items one must put together when pitching a startup is the financial model - the Excel workbook which contains formulas and variables predicting revenues and expenses and, ostensibly, a business model that could produce a big exit for the founders/shareholders.