Private Company Financings - 2008

To follow up on my post regarding valuations, and their recent....shrinkage...I wanted to share this fantastic report I got from the law firm, Cooley.  I've seen this data (or something similar) in a number of different formats, but I think their graphs do a nice job of conveying how drastically the world has changed.

Some of the other highlights include:

• Down or Flat Rounds come in at a whopping 52% of all deals
• Late stage deals receiving a big valuation drop, and an increased concern that even those values are too high, with almost 30% requiring 2x+ liquidation preference
• Along with these liquidation preferences, investors also made sure they were protected with full ratchet anti-dilution coverage (from an entrepreneur's perspective, the worst kind) with 15-20% of investors in C & D rounds making sure to take precaution

There is a ton more great info in the report, which I've hosted in a new box.net account and that you can access here.

I'm off to Xconomy's Cleantech in the Northwest event.  Hopefully I'll pick up a bunch of new stuff to share...

GB

image and hosted file, courtesy of Cooley