Provisions in Appropriations Bill to Improve FDA’s SPA Program Draw Support from Venture Capital Industry

ARLINGTON, VA – The National Venture Capital Association (NVCA) today endorsed language in the FY 2015 House Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations bill directing the Food and Drug Administration (FDA) to make improvements to the Special Protocol Assessment (SPA) process.

In a letter to the leadership of the House Energy and Commerce Committee, Bobby Franklin, NVCA President and CEO, expressed support for provisions in the appropriations bill that directs the FDA to treat drug sponsors fairly and abide by congressional standards for rescinding SPA agreements.  Franklin also endorsed the Appropriations Committee’s direction to require FDA to revise and reissue its existing guidance concerning SPA agreements in order to clarify the agency’s interpretation of the statutory standard governing the treatment of such agreements. (more…)

NVCA Members Testify at Congressional Hearing on Incentives to Advance Medical Research and Development

Venture capital investors offer solutions to reduce regulatory complexity and encourage investment into innovative medical companies

ARLINGTON, VA – At a hearing today before the House Energy and Commerce Subcommittee on Health, National Venture Capital Association (NVCA) members Mike Carusi, General Partner at Advanced Technology Ventures, and Alexis Borisy, Partner at Third Rock Ventures and NVCA Board Member, testified on the state of investment for medical technology and research and the role that regulatory and economic incentives can play to advance treatments and cures for patients. (more…)

Venture-Backed IPO Exit Activity Extends Streak Of 20+ Offerings For Fifth Consecutive Quarter

Average M&A Deal Size Falls to Lowest Level Since 2013

New York, New York, July 1, 2014 – Twenty-eight venture-backed initial public offerings (IPOs) raised $4.9 billion during the second quarter of 2014, a 45 percent increase, by dollars raised, compared to the previous quarter, according to the Exit Poll report by Thomson Reuters and the National Venture Capital Association (NVCA). The second quarter marked the fifth consecutive quarter to see 20 or more venture-backed IPOs but below the strong performance of the first quarter, which marked the strongest three-month period for new listings since the third quarter of 2000. For the second quarter of 2014, 97 venture-backed M&A deals were reported, 33 of which had an aggregate deal value of $3.3 billion. This represents a 56 percent decrease in disclosed value from the first quarter of this year. Average deal size during the second quarter totaled $98.6 million, the lowest average deal size since the first quarter of 2013. (more…)

Venture Capital Fund Performance Continues To Strengthen Amid Improving Exit Market

Venture Capital Outperformed DJIA, NASDAQ Composite and S&P 500 in Q4 2013

Arlington, VA, May 28, 2014 – Venture capital fund performance continued to make gains across most time horizons as of December 31, 2013, according to the National Venture Capital Association’s (NVCA) performance benchmark, the Cambridge Associates LLC U.S Venture Capital Index®. The quarterly, 1-, 3-, 5- and 10-year horizons all showed higher returns with the 15-year horizon down from the previous quarter and the 20-year horizon unchanged. Of note, the quarterly, 1-year and 5-year horizons nearly doubled to 11.9%, 27.2% and 12.5% respectively. Compared to other benchmarks, venture capital outperformed the DJIA, NASDAQ Composite and the S&P 500 during Q4 2013. Despite besting them for the quarter, the 1-, 3-, and 5-year returns were outperformed by DJIA, NASDAQ Composite and S&P 500. The 10-, 15- and 20-year venture capital performance horizons, however, continue to outperform the other benchmarks. (more…)

Corporate Venture Records Strongest Quarter of 2014 as a Percentage of Overall Venture Investing

Corporate venture groups accounted for 10.0% of total dollars invested and 17.2% of deals during Q3

ARLINGTON, VA – Corporate venture groups invested $993.6 million in 176 deals to U.S.-based companies during the third quarter of 2014, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Corporate venture accounted for 10.0% of all venture dollars invested and 17.2% of all venture deals in the third quarter, marking the strongest quarter of 2014 as a percentage of total venture investing. One hundred and sixty corporate venture groups have invested almost $3.3 billion in 562 deals through the third quarter of 2014, representing 9.3% of total venture dollars invested and 17.7% of all venture deals. If this pace continues, 2014 will mark the strongest year for corporate venture investing since 2000, when corporate venture groups invested $15.1 billion in 1,195 deals. (more…)

Dollars Invested in Software Companies Reaches $4 Billion for the First Time Since Q4 2000

WASHINGTON, April 18, 2014 – Venture capitalists invested $9.5 billion in 951 deals in the first quarter of 2014, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.  Quarterly venture capital (VC) investment activity rose 12 percent in terms of dollars but fell 14 percent in the number of deals, compared to the fourth quarter of 2013 when $8.4 billion was invested in 1,112 deals. (more…)

Venture Capital Funds Raised $8.9 Billion During First Quarter 2014 For Strongest Fundraising Quarter Since 2007

Number of New Funds Hit 14-Year High

New York, April 14, 2014 – U.S. venture capital firms raised $8.9 billion in new commitments from 58 funds during the first quarter of 2014, an increase of 81 percent compared to the level of dollar commitments raised during the fourth quarter of 2013 and a nine percent increase by number of funds, according to Thomson Reuters and the National Venture Capital Association (NVCA). The level of dollar commitments during the first quarter of 2014 more than doubled the comparable period in 2013 and marks the strongest quarter for venture capital fundraising, by dollars, since the fourth quarter of 2007 when $10.4 billion was raised for venture capital investments. (more…)