Venture Financing Report - Q4 2015

Deal Volumes Remain Strong as Valuations Cool

Overall deal activity in the fourth quarter of 2015 remained strong. In Q4 2015, Cooley handled 150 disclosable deals, representing more than $3.3 billion of invested capital. Median pre-money valuations declined in Q4 across all deal stages, with the exception of Series B transactions. The most notable decrease occurred in Series D+ deals. The percentage of up rounds remained strong at 88% of Q4 transactions. Deal terms during the quarter were mixed. The utilization of fully participating preferred provisions decreased from the prior quarter, while the utilization of both drag-along and pay-to-play provisions increased during Q4.

This quarterly summary provides data reflecting Cooley's experience in venture capital financing terms and trends. Information is taken from a subset of the transactions in which Cooley served as counsel to either the issuing company or investors.

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