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Archive for July, 2020

 

Please see link below of a video conversation that I had with Michael Matias of “20 Minute Leaders”.  This is a very focused discussion on “maximizing enterprise value” and I would recommend for senior lenders, venture capital and their portfolio companies.   https://www.youtube.com/watch?v=M86oYMFQbgo

“20 Minute Leaders” is daily show hosted by Michael Matias (Stanford University, former 8200 cybersecurity unit) in conjunction with J-Ventures. The series has over 200 episodes and releases episodes daily, featuring thought leaders from around the world across a variety of industries. If you want to be on the show, or know someone relevant, Michael is looking for more thought leaders. Link to the show: https://www.facebook.com/20minuteleaders/.

Feel free to reach out to Michael directly on email (michael@michaelmatias.com) or LinkedIn (https://www.linkedin.com/in/matiasmichael/)

Please visit Gerbsman Partners

 

 

 

 

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Please join Steven Gerbman of Gerbsman Partners and Don Milddleberg for a webinar on “Maximizing Enterprise Value in Challenging Times”.  This is presented by Winston/Baker, “the leading entertainment finance conference producer in the world”. 

We live in “challenging times” and with the uncertainty of having access to capital and/or debt over the next months, it is important for companies to review business and capital requirements, as well as potential real estate and/or creditor balance sheet contingent liability issues.

I have spoken with numerous companies, senior lenders and equity sponsors over the past months and there is a “wait and see attitude” regarding the need to access capital and/or restructure senior debt.   As this “Black Swan” crisis continues, it is hard to estimate when there will be business and capital access stabilization.  With over 40 years of experience, it is my recommendation that companies, lenders and equity should take action “now”, as compared to waiting.  As such, Gerbsman Partners is available to strategize and provide action plans for maximizing value and/or restructuring.

Gerbsman Partners represents companies, the Board, equity and/or senior lenders of under performing/distressed IP companies with the objective of maximizing enterprise value of their assets and IP, as well as terminating/restructuring prohibitive real estate leases, senior and junior debt and creditor issues.  Gerbsman Partners also assists emerging growth companies access the capital markets and leverage their Intellectual Property in licensing opportunities.

Please see below a presentation below that I gave at Stanford University –  “Early Warning Signs” and “Maximizing Value” for under-performing/distressed venture and senior lender backed Intellectual Property companies”.  This will be for use in the Stanford Engineering and Business Schools via STVP (Stanford Technology Ventures Program) and SCPD (Stanford Center for Professional Devlopment)  through this link

Also, see Winston Baker’s Webcast on “Maximizing Enterprise Value in Challenging Times: Crisis Management and Communications Strategies”.please view the replay here

To date, Gerbsman Partners has been involved in maximizing value in 109 intellectual property based companies and has terminated/restructured over $ 810 million of prohibitive real estate leases and creditor issues.

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Silicon Valley Venture Capital Flash Report – May 2020
 
By Cynthia Clarfield Hess, Mark A. Leahy, Barry J. Kramer and Khang Tran
Silicon Valley Venture Capital Flash Report – May 2020

Silicon Valley Venture Capital Flash Report – May 2020

July 14, 2020Publications

Download the full report.

Background

This survey is a special interim report to highlight changes in the Silicon Valley venture capital environment in light of the COVID-19 pandemic. It focuses on May financing activity and supplements our March 2020 and April 2020 Flash Reports.

Please note that when providing data on a monthly basis, and especially when analyzing trends among industries or series on a monthly basis, we are working with smaller numbers than in our quarterly report and accordingly the possibility of statistical anomalies increases.

Key Findings

Financing deal volume continued at levels similar to pre-pandemic levels, but May valuation results were weaker than April and significantly trailed 2019 results.

Overall financing volume stable.

  • The number of financings in May was flat with April, with 70 in each month. There was an average of 65 deals per month in 2019, although May 2019 had 75 financings.

The percentage of late-stage financings declined to close to pre-pandemic levels.

  • The percentage of Series D/E+ financings declined to 31% of all financings in May, compared to 38% in April. As the average percent of D/E+ financings in 2019 was 26%, we are likely seeing a reversion to the mean. This is perhaps an indication that venture capitalists who were focused on securing financing for their older, existing investments earlier in the pandemic are now returning their focus to earlier stage opportunities.

Software and life sciences deal volume strong.

  • Software companies accounted for 54% of May financings, above the 46% they accounted for in 2019. Life sciences financings also were above average, at 19% of May financings, compared to 14% in 2019. At the other end of the spectrum hardware deals accounted for only 3% of the financings in May, as compared to 11% of financings in 2019.

Valuations weaken.

  • The percentage of up-rounds declined modestly from 71% in April to 67% in May, but continued noticeably lower than the 83% up-rounds on average in 2019. The 67% up-rounds in May was the lowest monthly amount since August 2018, when only 66% of financings were up-rounds.
  • Flat-rounds continued above normal at 16% in May, which was the same in April, compared to 9% in 2019. This likely indicates an ongoing increase in reopening of prior rounds and/or insider-led rounds. Down-rounds increased from 13% in April to 17% in May, and remained above the 2019 average of 8%.
  • The average share price increase of May financings weakened noticeably, declining from 63% in April to 43% in May. The results for both April and May were significantly below the 2019 average increase of 93%.
  • The median share price increase also weakened, from 40% in April to 17% in May. Again, both were significantly below the 60% increase seen in 2019.
  • The valuation weakening compared to 2019 was evident in all industries except life sciences, where the average price increase in May slightly surpassed 2019 results.

Download the full report.

Also, check out our Startup Resource Center, featuring articles, videos, checklists, presentations and other tools to help entrepreneurs navigate every stage of company growth.

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Good afternoon

We live in “challenging times” and with the uncertainty of having access to capital and/or debt over the next months, it is important for companies to review business and capital requirements, as well as potential real estate and/or creditor balance sheet contingent liability issues.

I have spoken with numerous companies, senior lenders and equity sponsors over the past months and there is a “wait and see attitude” regarding the need to access capital and/or restructure senior debt.   As this “Black Swan” crisis continues, it is hard to estimate when there will be business and capital access stabilization.  With over 40 years of experience, it is my recommendation that companies, lenders and equity should take action “now”, as compared to waiting.  As such, Gerbsman Partners is available to strategize and provide action plans for maximizing value and/or restructuring.

Fyi, Gerbsman Partners represents companies, the Board, equity and/or senior lenders of under performing/distressed IP companies with the objective of maximizing enterprise value of their assets and IP, as well as terminating/restructuring prohibitive real estate leases, senior and junior debt and creditor issues.  Gerbsman Partners also assists emerging growth companies access the capital markets and leverage their Intellectual Property in licensing opportunities.

Please see below a presentation below that I gave at Stanford University –  “Early Warning Signs” and “Maximizing Value” for under-performing/distressed venture and senior lender backed Intellectual Property companies”.  This will be for use in the Stanford Engineering and Business Schools via STVP (Stanford Technology Ventures Program) and SCPD (Stanford Center for Professional Devlopment)  through this link

Also, see Winston Baker’s Webcast on “Maximizing Enterprise Value in Challenging Times: Crisis Management and Communications Strategies”.

please view the replay here

To date, Gerbsman Partners has been involved in maximizing value in 109 Intellectual Property based companies and has terminated/restructured over $810 million of prohibitive real estate leases and creditor issues.

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HAPPY INDEPENDENCE DAY 2020 and Many More

JULY 3, 2020

The Declaration of Independence was signed on July 4, 1776.  It said;

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness”. 

The founding of America was then, a very novel idea in building a nation based on individual rights and freedom.  A nation founded on the idea that man is inherently good and given freedom could/would live up to that good. A nation founded on the belief that all are created in the image of G-d.  That we are all children of G-d.  That given freedom, we could and would eventually have a country that lives up to and recognizes these “self-evident truths”.

Those who got freedom back then, were grateful.  Yet it was not something that they were familiar with and had no real experience.  They were an imperfect people given the freedom and opportunity based on the founding principles to grow and become a more “perfect union”.  So began the journey in learning how to use their new freedom.

We were created with free will.  The USA was created to be a land that gave us the opportunity to express our free will.  With the freedom of free will, we can choose to elevate ourselves and become the person we were created to be.  A unique person, with a unique purpose and mission for which we were each created.  A mission that contributes to the benefit of all.  A person who follows

“Love your fellow as yourself” (Leviticus 19;18).

“If I am not for myself, who will be for me. And if I am only for myself, of what good am I.” – Hillel, Ethics of fathers 1:14

Without these rights and freedom we could not pursue our dreams and our individual purpose.  When we use that freedom to be who we are meant to be, to fulfill our unique purpose, America will be all that it’s meant to be and what it was created for.   Without the freedom to fulfill our individual purpose, we will never get to a land fully defined by it’s founding principles.

What could be more gratifying for each of us to know that we chose, because we could, to use that freedom to reach our ultimate potential as human beings.  To know that it came from you and not imposed on you.  To look around us and see that all are enjoying “Life, Liberty and the pursuit of Happiness”  To be truly United.  It may take longer than we would like but freedom is the only way to get there.

If there are faults in America, it is not the fault of America.  We are all still imperfect people.

A young child asks his parents on a long trip, “Are we there yet?”.  The parent answers “no, not yet”.  On our journey, we must constantly ask ourselves, “Am I there yet?”. Each of us is a work in process that can lead to progress.  The closer we get, the closer we will be to the goal that America was founded on.  We have made much progress, so let’s keep going, until the answer becomes, “yes, we are there”.  Without freedom we will never get there!

To have the freedom to pursue and become our true selves is indeed something to be thankful for.

Our liberty should be celebrated everyday by using it for the good of all.

May we cherish, be grateful for, and protect those freedoms for many, many more years.

May we use our freedom to fulfill our greatest human potential.

HAPPY INDEPENDENCE DAY

God Bless America

https://spinningrabbi.com

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