SVASE Provides Early Stage Silicon Valley Startup Investment Insight
The Silicon Valley Association of Startup Entrepreneurs (SVASE) super-panel of Silicon Valley VCs and angel investors ready to debate the state of venture financing for startups in Silicon Valley and around the world
Palo Alto, CA (Vocus) September 16, 2010
VC-Angel Investor Super-Panel —SoftTech VC, Sierra Ventures, Cooley LLP, Draper Fisher Jurvetson, Banyan Water— Debate PWC Report Implications for Silicon Valley
The Silicon Valley Association of Startup Entrepreneurs (SVASE) (http://www. svase. org) today announced the introduction of a super-panel of Silicon Valley VCs and angel investors to debate the implications of PricewaterhouseCoopers’ MoneyTree™ Q2 report of global venture capital investment on venture financing in Silicon Valley and around the world. PricewaterhouseCoopers will unveil the MoneyTree™ report to attendees prior to the panel discussion.
This SVASE event will begin at 6:00 p. m., Thursday, September 16 at co-sponsor Cooley LLP’s (http://www. cooley. com) offices in Palo Alto, CA. Interested media should contact Jeff Lettes, jlettes@globalmediastrategy. com
According to PwC’s August 2010 report, "Quarterly Recovery," (http://www. pwc. com/us/en/health-industries/publications/moneytree-quarterly-rebound-august-2010.jhtml? wt. ac=vt-us-lifesciencesmoneytree) that includes data from the PwC/NVCA MoneyTree Report, based on data from Thomson Reuters (https://www. pwcmoneytree. com/MTPublic/ns/index. jsp), venture capitalists invested $6.5 billion in 906 deals in the second quarter, an increase of 34 percent in terms of dollars and 22 percent in terms of deals, compared to the first quarter of 2010 when $4.9 billion was invested in 740 deals.
The report stated that early stage funding increased in terms of dollars and deals from the previous quarter and rose year over year while later stage dollars and deals saw a decline from the prior quarter and year over year. While early stage investing saw a significant jump in Q2, rising to $751 million, an 83 percent jump from the prior quarter and a 33 percent increase compared to the second quarter of 2009, later stage funding decreased by 7 percent from Q1 2010 to $402 million. The number of Later Stage deals also saw a decline, falling to 44 deals in Q2 2010, a 6 percent decline from the prior quarter and a 17 percent drop when compared to the second quarter of 2009.
“Given the continued overall weakness of the IPO market and its effects on VC exits, as well as fund returns and fundraising, we are seeing angel and super angel investors becoming the more dominant initial funding sources for most Silicon Valley technology startups,” said Chris Gill, President and CEO of SVASE. “The renewed focus on early stage investments, coupled with the potential for earlier exit through acquisition in the $15 million - $50 million range is a welcome trend, encouraging more entrepreneurs to launch new startups.
“Fortunately, the type of access that Silicon Valley and SVASE provide to these types of funding sources, talent, customers, and experienced service providers, all in one highly concentrated area, are increasingly making Silicon Valley the best place in the world for entrepreneurs to launch their first, second, and third startup.”
The SVASE Super-Panel:
Jeff Clavier, Founder and Managing Partner, SoftTech VC Vispi Daver, Partner, Sierra Ventures Eric C. Jensen, Partner, Cooley LLP Warren Packard, Managing Director, Draper Fisher Jurvetson Tamin Pechet, CEO, Banyan Water LLC Moderator: Steve Bengston, Managing Director of Emerging Company Services, PricewaterhouseCoopers (http://www. pwc. com/us/en/index. jhtml)
Shaking the MoneyTree
The MoneyTree™ report is the definitive source of information on emerging companies that receive financing and the venture capital firms that provide it. As a collaboration between PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association, it is the only industry-endorsed research of its kind.
About SVASE
Founded in 1995 by entrepreneurs, for entrepreneurs, The Silicon Valley Association of Startup Entrepreneurs (SVASE) is the largest and fastest growing nonprofit in Northern California dedicated exclusively to helping technology and life science entrepreneurs start and grow successful businesses.
SVASE provides support and resources for entrepreneurs, from the idea through initial rounds of funding to product launch, delivered at 12 monthly events and a continually evolving web site. For more information about SVASE, please visit www. svase. org.
Media Contact:
Jeff Lettes, CEO, Global Media Strategy,
Director of Communications (SVASE)
Jlettes(at)globalmediastrategy(dot)com
408-406-1161
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