The law firm Fenwick & West compiles every quarter the financing terms received by Bay Area technology companies. I just found out that this report I used to receive by email from Bill Schreiber (a corporate partner I have been working with for a few years) was available on the web.This is a very useful indicator as to the evolution of typical terms recently offered by VCs. Key terms of a venture financing are: average round size, pre-money, type of liquidation preference (seniority, multiple, participating,…), dividends, provisions, etc. For a clear definition of all these terms, I recommend checking Brad Feld’s excellent series on financing terms, or the short version from Fenwick. Whilst the report does not give absolute terms (what is the typical pre-money for a Series A), it tells you about price evolutions over the past few quarters.
What were the key trends in Q1’05 ?
The quarter showed an increase in the number … Read more »