Tag Archives: venture capital

So Your Fund Wants to Invest in Canada, Eh?

Despite a recent cooling in the overall investment climate, the number of active U.S. venture investors in Canada has more than doubled over the past five years. This migration north coincides with a climb in overall venture investment activity in Canada, increasingly challenging pricing on U.S.-based deals and a lower Canadian dollar, which depreciated extensively over the same period.…

Recent Venture Capital Trends: CB Insights Q2 2013 Data

CB Insights has published summary data regarding recent venture capital trends, together with a full report available to paid subscribers.  In terms of investments by VCs, the report indicates that US$7.0B was invested in 807 deals in the second quarter of 2013, representing a small increase in dollars invested (versus US$6.9B in first quarter) but a decrease in the number of deals of approximately 4%. …

Mary Meeker – Forbes.com Interview and Profile

Mary Meeker 2.jpg

Eric Savitz of Forbes has a lengthy interview with Mary Meeker up on the Forbes.com site, a companion piece to his profile of Ms. Meeker in the August 6 print edition (which you can read online here).  In the interview, she talks about venture capital, her work investing a $1 billion tech growth fund for Kleiner Perkins (half of which has been deployed to date), the influential reports she produced as an early Internet analyst, and some of the companies that interest her now. …

VC Funding Levels Highest Since 2001 – Q2 2012 Report

Megan Muir.jpgCONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

CB Insights released their Q2 2012 Quarterly VC Report today, showing $8.1B was invested in 812 deals, the highest funding level since 2001.  One interesting trend in Q2 this is year is that 20% of the VC deals were for “seed” round investments (very early stage deals, usually with relatively small investment amounts).  The mobile and Internet sectors were very strong, including a bump in photo and video related companies (perhaps post-Instagram excitement).  And on a local note, Washington State had its highest quarter in over a year, with dollars invested up 136% from Q2 2011.  You can access the full report at CB Insights (you need to sign up for a free account).  The chart below shows VC activity over the past 2 years.…

Top 10 Reasons to Avoid Crowdfunding

In today's age of social media success stories, there is something superficially interesting about crowdfunding as a high-level idea. There has certainly been no shortage of attention to crowdfunding in the press and from business people. But in looking at the new JOBS Act exemption for crowdfunding, I see lots of reasons to avoid using it. While this list could be expanded - and will need to be revised as the SEC adopts rules to implement the new exemption - to get things started I offer up these ten reasons to avoid crowdfunding.

Venture Capital Fundraising and Investing – Q1 2012

Megan Muir.jpgCONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

The National Venture Capital Assocation (NVCA) recently released information regarding Q1 2012 VC fundraising and investment amounts.  They note that in the first quarter of the year, 42 venture funds raised a total of $4.9 billion while venture funds invested $5.8 billion in 758 deals in the same period.  You can find additional data, including details broken out by geographic regions, on the NVCA site here.…

Venture Capital Census 2011

Megan Muir.jpgCONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

The 2011 Venture Census results were released this week by the National Venture Capital Association (NVCA) and Dow Jones VentureSource.  This survey, first conducted in 2008, analyzes the demographics of venture capital professionals in the United States.  Although there was a small increase in ethnic diversity among current venture capitalists (an increase from 12 percent in 2008 to 13 percent in 2011), the number of women investor (non-administrative) professionals decreased from 14 percent in 2008 to 11 percent in 2011 while women administrative professionals accounted for 62 percent of the “non-investor” category.  Women did, however, make up the majority of venture capital firm CFOs.…

Super Committee Failure may mean no Changes to Carried Interest in Near-Term

Megan Muir.jpgCONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

With the failure of the Congressional Supercommittee to reach agreement by its deadline, some $1.2 trillion in automatic discretionary defense and non-defense federal spending cuts are set to become effective January 1, 2013 (although it remains to be seen what will occur in the intervening year).  One venture capital-related aspect of the failure to reach agreement is that there will be no action taken on changing taxation of carried interest for calendar year 2011, and likely not for 2012.  Mark Heesen, President of the National Venture Capital Association (NVCA) has a short post about this on the NVCA blog NVCAccess here.…

Mark Suster: Who to Hire after Closing your Early Stage Financing

Megan Muir.jpgCONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

Former entrepreneur and current venture capitalist Mark Suster has an interesting post on his blog “Both Sides of the Table” about his hiring suggestion to early stage companies.  His “ideal team” at the seed or Series A round (assuming 6 people) is made up of a CEO who doubles as head of product management and 5 engineers.  That’s it, no one else.  However, his recommendation to startups about who they should hire after they have a product built and shipped and have raised that first $2-3 million is somewhat surprising:

Your first hire after that first round of capital is an office manager/company-wide assistant.

Emerging Company & Venture Capital Newsletter

Megan Muir.jpgCONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

DLA Piper LLP (US) recently distributed an electronic newsletter “Emerging Growth and Venture Capital News” containing articles regarding certain avoidable expensive employment-related mistakes by startups, updated federal rules governing investment advisers, cloud computing, and valuations in the context of venture capital financings.  The newsletter also has a list of some representative emerging company and VC transactions recently completed by DLA Piper attorneys.  If you would like to be added to DLA Piper’s e-mail distribution lists for news related to venture capital funds and emerging growth companies, click here.…

Venture Capital Returns Looking Up

Megan Muir.jpgCONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

The National Venture Capital Association (NVCA) and Cambridge Associates LLC have released results of their venture capital fund performance study showing some positive signs, as summarized in this NVCA press release.  Some details regarding returns over time are available here: NVCA Q2 2011 VC Performance and the entire report can be downloaded here.…

** UPDATED ** Net worth standard for ‘accredited investors’

Ledbetter, Andrew D._photo_3659.jpgCONTRIBUTED BY
Andrew Ledbetter
andrew.ledbetter@dlapiper.com

The SEC yesterday proposed rules on the “accredited investor” net worth standard, to implement Section 413(a) of the Dodd-Frank Act. Not much “new” here, but the proposed definition is:

Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of purchase, exceeds $1,000,000, excluding the value of the primary residence of such natural person, calculated by subtracting from the estimated fair market value of the property the amount of debt secured by the property, up to the estimated fair market value of the property.

Employee Equity Comp – A VC Says be Generous

Megan Muir.jpgCONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

 NY venture capitalist Fred Wilson has an interesting blog post about various approaches to employee equity being considered by some of his fund’s portfolio companies. For now, he comes out in favor of granting stock options instead of restricted stock or other forms of equity. The last few lines reveal some of his investing approach:…

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