CBInsights has published its annual survey on corporate venture capital (CVC). Globally, 2,740 deals were completed raising $52.95 billion. This represented an increase of 32% in number of deals over 2017 and an increase of 47% in total capital raised over the preceding year. The average CVC deal size has reached an all-time high of
Venture Capital
Public Venture Capital
By Anna T. Pinedo on
In a recent paper titled, “Public or Private Venture Capital?” author Darren M. Ibrahim compares the relative benefits associated with reliance on private capital to fund start-ups and emerging companies with “public” venture capital in the form of securities exchanges like the London Alternative Investment Market, or AIM. The author looks at three such venture…
Venture Capital Valuations
By Anna T. Pinedo on
Posted in Unicorns, Venture Capital
In “Squaring Venture Capital Valuations with Reality,” authors Will Gornall and Ilya Strebulaev developed a valuation model for venture capital-backed companies that relies on terms of financing rounds that were gleaned from public filings. Using these reported valuations, the authors then calculate values for all share classes for each of the 135 US unicorns in…
Tech IPO Pipeline Report
By Anna T. Pinedo & Carlos Juarez on
CB Insights recently published its seventh annual Tech IPO Pipeline Report. The report notes that in 2013, the median time between first funding and IPO for U.S. VC-backed tech companies was 6.9 years compared to 10.1 years for tech companies that went public in 2018. As we have noted in previous posts, tech…
Private Financing Trends
By Anna T. Pinedo on
Posted in Private Companies, Venture Capital
The recently published PwC and CB Insights’ MoneyTree Report provides insights on financing trends through the third quarter of 2018. In Q3 2018, U.S. companies raised $28 billion in venture financing despite a drop in number of deals in the most recent quarter. The dollars raised in Q3 2018 reached in a two-year high, which…
IPO Lockups and Stock Price Declines
By Anna T. Pinedo on
Posted in IPOs, Venture Capital
In a paper titled, “IPO Lockup Expirations: A Persistent Anomaly of Scale,” author Kevin Green reviews the decline in stock prices following the expiration of lockup agreements relating to initial public offerings. Green reviewed all IPOs from 1988 to 2014 and then observed the trading activity around the lockup expiration. Despite the availability…
Do Founders Regain Control Through IPOs?
By Anna T. Pinedo on
Authors Brian Broughman and Jesse Fried study founder control in their paper titled, “Do Founders Control Start-Up Firms that Go Public?” In their paper, the authors observe that many founders of startups lose control through the process of raising capital from venture capital funds. The authors debunk the notion that founders regain control…
Financial Regulatory Reform Legislation Includes Securities Provisions
Congress has passed the Economic Growth, Regulatory Relief, and Consumer Protection Act, which principally addresses financial regulatory measures. The legislation also includes a number of securities law related provisions. For example, Section 503 requires that the SEC review the findings and recommendations of the annual SEC Government-Business Forum on capital formation and address the findings…