Private Company Financing Trends1
(WSGR Deals)
| |
2008
All Rounds2 |
1H 2009
All Rounds2 |
Q3 2009
All Rounds2 |
1H 2009
Up Rounds3 |
Q3 2009
Up Rounds3 |
1H 2009
Down Rounds3 |
Q3 2009
Down Rounds3 |
| Liquidation Preferences - Series B and Later |
| Senior |
45% |
54% |
60% |
44% |
48% |
64% |
67% |
| Pari Passu with Other Preferred |
53% |
41% |
37% |
51% |
48% |
30% |
29% |
| Complex |
2% |
3% |
4% |
2% |
4% |
5% |
5% |
| Not Applicable |
0% |
1% |
0% |
4% |
0% |
0% |
0% |
| |
| Participating vs. Non Participating |
| Participating - Cap |
28% |
20% |
24% |
21% |
17% |
17% |
22% |
| Participating - No Cap |
30% |
35% |
30% |
26% |
22% |
41% |
43% |
| Non-participating |
42% |
45% |
46% |
53% |
61% |
42% |
35% |
| |
| Anti-Dilution Provisions |
| Weighted Average - Broad |
92% |
91% |
97% |
95% |
100% |
86% |
91% |
| Weighted Average - Narrow |
2% |
4% |
2% |
2% |
0% |
5% |
4% |
| Ratchet |
5% |
4% |
1% |
4% |
0% |
5% |
4% |
| Other (Including Blend) |
1% |
1% |
0% |
0% |
0% |
3% |
0% |
| |
| "Pay to Play" - Series B and Later |
| Applicable to this Financing |
6% |
16% |
11% |
3% |
0% |
23% |
17% |
| Applicable to Future Financings |
7% |
6% |
5% |
3% |
0% |
8% |
8% |
| No |
86% |
78% |
84% |
93% |
100% |
68% |
75% |
| |
| Redemption |
| Investor Option |
31% |
32% |
31% |
33% |
30% |
32% |
33% |
| Mandatory |
3% |
2% |
2% |
3% |
4% |
0% |
0% |
| No |
66% |
66% |
67% |
64% |
65% |
68% |
67% |
| |
If you would like to be included on the email subscription list for the The Entrepreneurs Report,
which discusses financing trends, please contact Eric Little. There is no subscription fee.
[1] Numbers do not always add up to 100% due to rounding |
|
[2] Includes Series A rounds unless otherwise indicated |
|
[3] Includes flat rounds and, unless otherwise indicated, Series A rounds |
|
|
