- Valuations are up. Up-rounds beat down rounds 55% to 27%, with flat rounds making up the difference. F&W’s venture capital barometer showed an average price increase of 30%.
- DowJones VentureSource reported that $7.7B of VC was invested in the US in 2Q10 across 744 deals.
- VentureSource reported 79 acquisitions of VC-backed firms, for a total value of $4.3B
- There were 17 VC-backed firms that executed an IPO in 2Q10, compared to 9 in 1Q10
- Fundraising by VCs declined in 2Q10, with 38 firms raising $1.9B, compared to 38 firms raising $3.7B in 1Q10
- 90% of VCs surveyed expect the number of venture firms to decrease between now and 2015. (I suppose they all think it’s the “other guys” who are going to fold.) Reasons cited include: difficultly in achieving successful exits, unfavorable tax policy, and an unstable regulatory environment
- The Silicon Valley Venture Capitalist Confidence Index produced by USF professor Mark Cannice declined to 3.28 in 2Q10 from 3.65 in 1Q10, breaking a five-quarter streak of increases. The drop was attributed to shocks from the macro economy and shocks to the venture industry itself.
- 18% of rounds in 2Q10 were A rounds
- 27% of rounds were up rounds
- Of down rounds, D rounds led by series at 36% of down rounds
- Software had 34 financings with 73% up and a barometer increase of 51%
- Internet and digital media had 23 financings with 52% up and a barometer increase of 43%
- 40% of rounds had liquidation preferences
- 17% of those rounds with preference had multiple liquidation preferences, 71% of those were in the half-closed interval (1,2]x
- 35% of rounds had participating preferences
I'm Dave Kellogg, the CEO of Host Analytics, the leader in cloud-based enterprise performance management (EPM).
Previously, I was SVP/GM of Service Cloud at Salesforce and CEO at unstructured big data provider MarkLogic. Before that, I was CMO at Business Objects for nearly a decade as we grew from $30M to over $1B. I started my career in technical and product marketing positions at Ingres and Versant.
I love disruption, startups, and Silicon Valley and have had the pleasure of working in varied capacities with companies including Alation, AppMesh, Breeze, Data Hero, GainSight, MongoDB, Tableau, and WeMakeItSafer. I currently sit on the board of agtech startup Granular and previously sat on the board of big data visionary Aster Data (until its successful sale to Teradata).
I periodically speak to strategy and entrepreneurship classes at the Haas School of Business (UC Berkeley) and Hautes Études Commerciales de Paris (HEC).
- The Ultimate SaaS Metric: The Customer Lifetime Value to Customer Acquisition Cost Ratio (LTV/CAC)
- The Customer Acquisition Cost (CAC) Ratio: Another Subtle SaaS Metric
- Why Palantir Makes My Head Hurt
- Measuring SaaS Renewal Rates: Way More Than Meets the Eye
- Perpetual Money vs. Perpetual License: Subscription, SaaS, and Perpetual Business Models
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- This blog is written by Dave Kellogg and covers a mix of topics including performance management, analytics, big data, and social technologies along with commentary on Silicon Valley, venture capital, and the business of software.