Fenwick and West Venture Capital Survey
Fenwick and West has published its latest survey of the venture capital financings closing during the last quarter. You can access their report here. The survey is a good source for information on trends in valuations as well as deal terms. For example, the survey reports that in 1Q10, 49% of the financings were up rounds, 32% down rounds and 19% were flat. This is trending higher from a low in 1Q09 when only 25% of the financings were up rounds. So things are looking up, but have yet to fully recover from the recent downturn.
Also addressed in the survey are the types of anti-dilution provisions used, liquidation preference multiples, participation in liquidation, and the use of cumulative dividends. It’s certainly worth a read if you are contemplating an upcoming financing.