SOURCE: Cooley LLP

Cooley LLP

August 15, 2011 12:53 ET

Cooley Report Reviews Second Quarter Venture Capital Financing Trends

PALO ALTO, CA--(Marketwire - Aug 15, 2011) - Cooley LLP today released its most recent report on venture capital financing trends. The report analyzes Cooley's venture capital transactions nationwide that closed during the second quarter of 2011, with comparisons to the first quarter of 2011 as well as prior quarters.

Highlights from the second quarter of 2011 include:

  • Cooley handled 112 deals in Q2, with total deal volume amounting to more than $2 billion in invested capital, a level not seen since 2006.
  • There were more up rounds than at any time since Q4 2009. Up rounds increased to more than 72 percent of financings in Q2.
  • Average valuations for Series A deals were $8 million, a level not seen since Q3 2010.
  • There was a decrease in deals utilizing pay-to-play provisions, to the lowest level since Q4 2007.

"Our deal trends for the second quarter reinforce that the funding environment for emerging companies remained robust, and we saw continued optimism on the part of investors," said Craig Jacoby, head of Cooley's Emerging Companies practice.

Cooley's Private Company Financings Report is published quarterly and is based on private company transactions in which Cooley served as counsel to either the issuing company or the investors. The analysis in this report is based on 112 deals completed in Q2 2011 across the United States, totaling approximately $2 billion. A complete version of the report is available here.

About Cooley LLP

Cooley's 650 attorneys have an entrepreneurial spirit and deep, substantive experience, and are committed to solving clients' most challenging legal matters. From small companies with big ideas to international enterprises with diverse legal needs, Cooley has the breadth of legal resources to enable companies of all sizes to seize opportunities in today's global marketplace. The firm represents clients across a broad array of dynamic industry sectors, including technology, life sciences, venture capital, clean energy, real estate and retail.

The firm has full-service offices in major business and technology centers across the United States: Palo Alto, CA, New York, NY, San Diego, CA, San Francisco, CA, Reston, VA, Broomfield, CO, Washington, DC, Boston, MA and Seattle, WA.

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