- 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, advisor, director, consultant, angel investor, and blogger focused on enterprise software startups. I am an executive-in-residence (EIR) at Balderton Capital and principal of my own eponymous consulting business.
I bring an uncommon perspective to startup challenges having 10 years’ experience at each of the CEO, CMO, and independent director levels across 10+ companies ranging in size from zero to over $1B in revenues.
From 2012 to 2018, I was CEO of cloud EPM vendor Host Analytics, where we quintupled ARR while halving customer acquisition costs in a competitive market, ultimately selling the company in a private equity transaction.
Previously, I was SVP/GM of the $500M Service Cloud business at Salesforce; CEO of NoSQL database provider MarkLogic, which we grew from zero to $80M over 6 years; and CMO at Business Objects for nearly a decade as we grew from $30M to over $1B in revenues. 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 Bluecore, FloQast, GainSight, Hex, MongoDB, Pigment, Recorded Future, and Tableau.
I previously served on the boards of Alation (data intelligence), Aster Data (big data), Granular (agtech), Nuxeo (content services), and Profisee (MDM).
I periodically speak to strategy and entrepreneurship classes at the Haas School of Business (UC Berkeley) and Hautes Études Commerciales de Paris (HEC).
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