NVCA Welcomes Passage of TROL Act by Energy and Commerce Subcommittee

Bill strikes right balance of preventing bad behavior while protecting patent holders

ARLINGTON, VA – The National Venture Capital Association (NVCA) issued the following statement today after the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade passed the Targeting Rogue and Opaque Letters (TROL) Act of 2014. (more…)

Number Of Venture Capital Funds That Raised Capital Hits Seven-Year High In Second Quarter

U.S. Firms Raise Nearly $7.5 Billion

New York, July 9, 2014 – U.S. venture capital firms raised $7.4 billion in new commitments from 78 funds during the second quarter of 2014, a 24 percent increase compared to the number of funds raised during the first quarter of 2014 and a 19 percent decline by dollar commitments, according to Thomson Reuters and the National Venture Capital Association (NVCA). The number of funds raised during the second quarter of 2014 increased 42 percent compared to the second quarter of last year and marks the strongest quarter for venture capital fundraising, by number of funds, since the fourth quarter of 2007 when 83 funds were raised for venture capital investments. (more…)

NVCA Applauds SEC for Developing Pilot Program for Wider Tick Sizes

Provides small companies with another tool to raise capital in the public markets

ARLINGTON, VA – The National Venture Capital Association (NVCA) today applauded the U.S. Securities and Exchange Commission (SEC) after the regulatory agency unveiled plans to implement a one-year pilot program to trade small- and medium-sized stocks in five-cent increments on U.S. stock exchanges. (more…)

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…)