October 29, 2013 - There were 1,005 venture capital deals in the US in Q3 2013 totaling $7.8B. This continued a quarter on quarter increase in both deals and dollars and also represents a 2% increase in number of deals and a 4% increase in dollars raised on a rolling four quarters basis. 346 of the deals in Q3 2013 were first time financings, which totaled $1.3B. This represents an increase in both deals and dollars over Q2, but in the same proportion to total deals and dollars raised, at 34% and 16% respectively.
October 29, 2013 - It's no secret that building a company is hard work. While entrepreneurial ventures can be full of excitement and energizing in many respects, they are still work and run the risk that the strain could burn out employees. Well known (and well funded!) startups will experiment with various perks like ping pong tables, catered lunches and flexible work hours in an attempt to keep employees happy while providing attachments above and beyond a paycheck. Happy teams lead to happy customers!
October 16, 2013 - In my prior post, I gave an overview of the theory behind financial covenants in venture debt deals and some basic examples of the types of covenants used by lenders. With this post, we will take a deeper look at what happens when a covenant is violated, and the pros and cons of venture debt deals with covenants.
October 7, 2013 - In Q3 2013, 56 US venture capital funds raised $4.1B, which represents a slight 2% decline in the number of funds and a 7% fall in the amount of capital raised on a rolling four quarter basis. Consequently, average fund size is also down 5% to $76MM.
October 4, 2013 - The 10 year time horizon of the US Venture Capital Index ® by Cambridge Associates LLC continued its improvement in Q1 2013 to 7.8%. However, due to a resurgence in the public markets, average venture capital performance fell slightly below the public indices in the sub 10 year time horizons. The Late Stage US Venture Capital Index still outperformed the public indices in the five year time horizon, while the Early Stage Index continued to outperform dramatically over the 15 and 20 year periods.
October 4, 2013 - The fiscal tragedy playing out in our nation's capital will have real consequences, both intended and unintended, in the days, weeks, and months to come. At issue are two critical elements: the federal budget and the debt ceiling. While these are two distinct and separate concerns, the political climate is such that neither topic will likely be resolved before their respective deadlines.