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Posts Tagged ‘Fenwick & West’

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Silicon Valley Venture Capital Survey – First Quarter 2018
First Look
By Cynthia Clarfield Hess, Mark A. Leahy and Khang Tran

View the “First Look” report.

Background
This report analyzes the terms of 200 venture financings closed in the first quarter of 2018 by companies headquartered in Silicon Valley.

Overview of Results
Valuation Results Remain Strong But Have Flattened
Valuation results were generally flat in Q1 2018 compared to the prior quarter. Overall, valuation metrics are well above historical averages, but have plateaued since Q3 2017.

Up rounds exceeded down rounds 75% to 15%, with 10% flat in Q1 2018, an increase from Q4 2017 when up rounds exceeded down rounds 70% to 19%, with 11% flat.

Internet/Digital Media Continues to Score Highest Valuation Results
Similar to the prior quarter, the internet/digital media industry recorded the strongest valuation results in Q1 2018 compared to the other industries, with an average price increase of 101% and a median price increase of 59%.

However, the valuation results for the internet/digital media industry were moderately weaker compared to the prior quarter. In contrast, the software, hardware and life sciences industries all recorded stronger valuation results in Q1 compared to the prior quarter.

This quarter we are giving you, our readers, a “First Look” report that allows us to provide you the top-line trends for venture capital financings of Silicon Valley companies in Q1 more quickly. This “First Look” will be followed in several weeks with a more in-depth “Full Analysis” that will provide a broader perspective and include coverage of venture capital financings in other geographies drawing on data from a variety of industry reports.

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IMG
Silicon Valley Venture Capital Survey – Fourth Quarter 2017
Full Analysis
By Cynthia Clarfield Hess, Mark A. Leahy and Khang Tran

View the full report.

Background
This report analyzes the terms of 190 venture financings closed in the fourth quarter of 2017 by companies headquartered in Silicon Valley.

Overview of Results
Valuation Results Remain Strong
Valuation results continued to be strong in Q4 2017, but the percentage price increases declined moderately compared to the prior quarter, following three consecutive quarters of increases.

Internet/Digital Media Scores Highest Valuation Results
The internet/digital media industry recorded the strongest valuation results in Q4 2017 compared to the other industries, with an average price increase of 179% and a median price increase of 51%, both up from the prior quarter.

Valuation Results Down for Series D Financings
Series D financings recorded the weakest valuation results in Q4 2017 compared to the other financing rounds, with the highest percentage of down rounds and the lowest average and median price increases of all the financing rounds.

Full Report
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Silicon Valley Venture Capital Survey – First Quarter 2017

Click here for the full survey.

Background

This report analyzes the valuations and terms of venture financings for 191 companies headquartered in the Silicon Valley that raised capital in the first quarter of 2017.

Overview of Results

Venture valuations improved slightly in Q1 2017 compared to the prior quarter, with valuation metrics now flat with their 13-year averages after falling from 2015 peaks. The hardware industry had the strongest valuation results in the first three months of 2017.

Valuations Stabilize
Venture valuations showed improvements in Q1 2017 compared to Q4 2016, and valuation metrics are now generally flat with their 13-year averages after having fallen from all-time highs in mid-2015.

Hardware Sector Stands Out
The hardware industry recorded the strongest valuation results in Q1 2017, with the Fenwick & West Venture Capital Barometer™ showing an average price increase of 81% in Q1 2017, up from 50% in Q4 2016.

Valuations Improved for Later Stage Investments
The Barometer showed an average price increase for Series D and E+ rounds of 45% and 60% in Q1 2017, an increase from the 16% and -1% recorded in Q4 2016.

Investor-Favorable Deal Terms Increase
The use of investor-favorable deal terms, including multiple liquidation preferences, participation rights and cumulative dividends, increased in Q1 2017.

Download complete results of the survey with related discussion.

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Fenwick & West -Silicon Valley Venture Capital Survey – Third Quarter 2016

Background

We analyzed the terms of 149 venture financings closed in the third quarter of 2016 by companies headquartered in Silicon Valley.

Overview of Results

The weakening in venture valuations that began in the second half of 2015 continued in 3Q16, with two of our three valuation metrics declining. Overall the valuation metrics have returned to their 12 year averages after a very strong 2014-2015.

  • Up rounds exceeded down rounds in 3Q16, 71% to 14%, with 15% flat. This was a decline from 2Q16 when up rounds exceeded down rounds 74% to 13%, with 13% flat. This was the fourth straight quarter in which the number of up rounds declined and the lowest percentage of quarterly up rounds since 2Q13.
  • The average price increase of financings in 3Q16 compared to the prior financing round (the “Barometer”) was 52%, an increase from the 40% recorded in 2Q16. This increase was primarily due to two (life science) companies that closed financings with price increases five or more times their prior round. There were no such financings in 2Q16.
  • The median price increase of financings in 2Q16 compared to the company’s prior financing was 31%. This was a decline from the 36% recorded in 1Q16, the fourth straight quarterly decline and the lowest median increase since 4Q13. The 12 year average median increase is 28%.
  • The median price increase of financings in 3Q16 compared to the prior financing round was 27%, a decline from the 31% recorded in 2Q16. This was the fifth straight quarterly decline and the lowest median price increase since 4Q13.
  • The strongest industry was “Other”, which consists primarily of venture backed food and personal care/fashion companies. Although software was the next strongest industry, its average price increase was the lowest since 3Q10.

Click here for the full survey.

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FENWICK & WEST

AUGUST, 2016

AUTHORS:
BARRY KRAMER
KHANG TRAN
STARTUP & VC

SECOND QUARTER 2016

Venture Capital Survey

Set forth below is the link to Fenwick & West 2Q16 venture survey.

Second Quarter 2016 Silicon Valley VC Survey

We hope you find this information useful and would be happy to answer any questions you might have regarding the survey.

Regards,
Barry Kramer
Khang Tran

 

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SECOND QUARTER 2014

Venture Capital Survey

Set forth below is the link to our 2Q14 venture survey.

Second Quarter 2014 Silicon Valley VC Survey

We hope you find this information useful and would be happy to answer any questions you might have regarding the survey.

We would like to express our appreciation to the Venture Capital Journal, Venture Wire and PeHUB for allowing us to provide to our readers certain of their articles that are behind a “pay wall” and that would otherwise require a subscription to read.

Regards,
Barry Kramer
Michael Patrick

2Q14 VC Survey Printer Friendly Version

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Silicon Valley Venture Survey – Third Quarter 2013

November 20, 2013

Background
We analyzed the terms of venture financings for 128 companies headquartered in Silicon Valley that reported raising money in the third quarter of 2013.

Overview of Fenwick & West Results
Valuation results in 3Q13 showed a noticeable increase over 2Q13, including the greatest difference between up and down rounds in over six years. The software industry was especially strong, not only valuation-wise, but also in the number of deals.

Here are the more detailed results:

  • Up rounds exceeded down rounds 73% to 8%, with 19% of rounds flat. This was a significant increase from 2Q13 when up rounds exceeded down rounds 64% to 22% with 14% flat, and the best quarter (measured by amount by which up rounds exceeded down rounds) since 3Q07.
  • The Fenwick & West Venture Capital Barometer™ showed an average price increase of 65% in 3Q13, an increase from the 62% reported in 2Q13.
  • The median price increase of financings in 3Q13 was 43%, a noticeable increase from the 19% and 14% reported in 2Q13 and 1Q13, respectively.
  • The results by industry are set forth below. In general internet/digital media slightly edged out software for best valuation performance, although there were significantly more software deals than internet/digital media, as software deals were 53% of all deals, the highest amount since we began tracking results by industry in 1Q10. Life Science fell to 10.2% of all deals, the lowest percentage since 1Q10.
  • The percentage of financings with participating liquidation preference was 27%, the lowest amount since we began our survey in 2002 and an indication of an entrepreneur friendly environment.

Overview of Other Industry Data
Overall the venture environment improved in 3Q13, but due to a slow start 2013 lags 2012 in some categories.

  • Venture investing in 3Q13 increased, bringing the first three quarters of 2013 approximately even with 2012, although trailing 2011.
  • IPOs were again strong in 3Q13. Although 2013 is expected to be the best year for venture backed IPOs since 2007, much of the increase through the first three quarters has been focused in the life science sector.
  • M&A improved noticeably in 3Q13, but 2013 is on track to have the lowest number of acquisitions of venture backed companies since 2009.
  • Venture fundraising improved over a weak 2Q13, but 2013 was on track to be the lowest fundraising year since 2010.
  • Corporate venture capital participation continued to increase.
  • Angel financing results were mixed. And with new more liberal regulations regarding public solicitations and crowd funding, the angel financing world is likely in for some changes.
  • Venture capitalist sentiment hit the highest level since the 2008 recession.

The more detailed results follow: http://www.fenwick.com/publications/Pages/Silicon-Valley-Venture-Survey-Third-Quarter-2013.aspx?WT.mc_id=2013.Q3_VCS_BK

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