In the International Financial Law Review’s latest publication, A Deep Dive Into Capital Raising Alternatives, Mayer Brown provides context on the changes in market structure and market dynamics that led to the enactment of the JOBS Act. Specifically, the trend for many private companies to remain private longer, defer or dispense with traditional
Private investment in public equity (“PIPE”) transactions completed in 2020* have raised over $53.0 billion, in aggregate, in 1055 transactions. This is the largest sum of capital raised in PIPE transactions since 2008. While industrials companies (chemicals, metals, mining and paper-focused companies) lead the market by number of PIPEs completed, the 323 deals in this
The National Center of the Middle Market (NCMM) conducted a survey from March 12-23, 2020 of 400 strategic decision makers from life sciences companies in the United States and Canada. The report noted middle market life sciences companies, which include companies with annual revenues between $10 million and $1 billion, have experienced robust growth. Between
The National Center for the Middle Market recently published the results of a survey of 1,000 financial decision-makers in June 2020 relating to results from the fourth quarter of 2019 and a March 2020 survey of 260 middle market companies, which include companies with annual revenues between $10 million and $1 billion.
The survey found
Funding in the fintech sector increased 17% quarter-over-quarter, after two quarters of declines, to $9.3 billion according to CB Insights’ recent State of Fintech report. Despite the funding increase, the number of deals continued to decline globally, continuing the decline since the fourth quarter of 2019. In the second quarter of 2020, 397 global venture-backed
Special purpose acquisition companies (“SPACs”) are public shell companies that use their initial public offering (“IPO”) proceeds in order to acquire private companies within a specific timeframe. Although SPACs have existed for decades, merging into a SPAC has recently become an attractive alternative for private companies in lieu of undertaking traditional IPOs. Today, SPACs have
PIPE transactions continue to be a popular capital raising approach for companies. Through July 31, 2020, companies have raised over $47.2 billion in 779 PIPE transactions. Healthcare and life sciences companies raised almost $11 billion in PIPE transactions. Technology and industrials companies also raised significant amounts of capital, totaling $10.1 billion and $9.2 billion, respectively.
PwC and CB Insights’ latest MoneyTree Report reports a 3% increase in U.S. venture capital deals this past quarter. There were 1,374 deals in the second quarter of 2020 compared to 1,336 deals in the first quarter 2020. This increase comes after a three-quarter decline in venture deals. While the number of deals is down
The private investment in public equity (PIPE) transaction has proven to be a popular financing tool in volatile markets. For the first five months of 2020, $29.3 billion has been raised through PIPE transactions, primarily in the healthcare and technology sectors.
Data source: PrivateRaise
Comparing timeframes (January 1 through June 9) year-over-year since 2015, there
During the first quarter of 2020, venture funding levels in the global healthcare and life sciences sector has increased 4% by dollars raised, quarter-over-quarter, despite the turbulent COVID-19 environment. According to a recent CB Insights report, healthcare companies raised $14.6 billion this past quarter in 1,156 deals. Deal volume decreased 6% quarter-over-quarter. The inverse