VCs Pleased: Signs of Return to Normalcy
I just got off the prep call for this month’s SVASE East Bay Series event, Closing the Deal: Terms and Valuations.
The VCs who participated were pretty upbeat. Here are some of their observations:
- Since Labor Day, deals have been moving much more quickly – term sheets being offered within weeks rather than months. One hypothesis: A strong desire among VCs to invest their money before year-end.
- More flat, rather than down, follow-on rounds. (“Flat is the new up.”)
- There are signs of life in the public markets.
- Syndication is widespread to help ensure that follow-on money will be available if and when needed. (Syndication does mean, however, that founders must be prepared for greater dilution.)
I was encouraged. Although this has been a tough year for many of my clients, I am optimistic that the economy is moving in the right direction and that 2010 will be significantly better than 2009.
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.
Categories: Entrepreneurship, Financing, Startup
Dana Shultz is a business-savvy lawyer located in Northern California's San Francisco Bay Area (in the East Bay, near Oakland) who has in-depth knowledge of law, business, technology, and the needs of startup and early-stage companies.