Corporate Venture Activity Slows in Second Quarter

Corporate Venture Groups Participated in 20.6 Percent of all Deals and 24.2 Percent of Investment in Biotechnology Sector

WASHINGTON, DC – Corporate venture groups deployed over $1.2 billion in 198 deals to the entrepreneurial ecosystem in the second quarter of 2016, according to the MoneyTree™ Report by PricewaterhouseCoopers (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.  The percentage of deals with corporate venture participation was 20.6 percent during the second three months of the year.  While this marked the sixth straight quarter of over 20 percent of all venture deals having corporate venture involvement, it was the first quarter to show signs of a slowdown in corporate venture participation.  Including the second quarter, corporate venture groups have now invested more than $1 billion into the entrepreneurial ecosystem for ten straight quarters.

“Corporate venture activity for the quarter largely mirrored overall venture investing trends, marked by a 17 percent drop in the number of deals with corporate venture participation.  While the second quarter was more subdued, we’ve witnessed a high-level of corporate venture engagement the past year and a half, demonstrating an appreciation by corporations of the value and importance of being a part of the entrepreneurial ecosystem,” said Bobby Franklin, President and CEO of NVCA.  (more…)

$15.3 Billion in Venture Capital Deployed to Startup Ecosystem in Second Quarter, According to the MoneyTree Report

Tenth Consecutive Quarter of More than $10 Billion in Venture Capital Investments

WASHINGTON, DC – Venture capitalists invested $15.3 billion in 961 deals in the second quarter of 2016, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Total venture dollars deployed to startup companies for the quarter increased 20 percent and total deal count was down 5 percent, compared with the first quarter when $12.7 billion was invested in 1,011 deals. Compared with Q2 2015, dollars and deals are down 12 and 22 percent, respectively. This is the tenth consecutive quarter of more than $10 billion in venture capital invested in a single quarter. (more…)

Venture Investors Scott Kupor and Ali Behbahani Discuss Role of Venture in Supporting Entrepreneurship at Congressional Hearing

Offer lawmakers detailed policy recommendations to strengthen entrepreneurial ecosystem

WASHINGTON, DC – Venture investors Scott Kupor, Managing Partner at Andreessen Horowitz and Chair-elect of the NVCA Board of Directors, and Ali Behbahani, MD, Partner at New Enterprise Associates (NEA), testified today before the Senate Committee on Small Business and Entrepreneurship at a hearing to examine the role of venture capital in supporting innovation and spurring entrepreneurial activity in the U.S.

Venture’s Role in the Entrepreneurial Ecosystem

During testimony, Kupor and Behbahani walked Senators through the basics of the venture capital model, debunking misperceptions about venture and detailing the hands on work venture investors put in to growing successful startups.

“The reality is that those who are successful in our field don’t just pick winners.  We work actively with our investments to help them throughout the company-building lifecycle over a long period of time,” said Kupor during his opening testimony.  (more…)

Media Advisory: NVCA Members to Testify Before Congressional Panel on Role of Venture in Entrepreneurial Ecosystem

Ali Behbahani, MD of NEA and Scott Kupor of Andreessen Horowitz to Headline Senate Small Business Committee Hearing

WASHINGTON, DC – The National Venture Capital Association (NVCA) today announced that Scott Kupor, Managing Partner at Andreessen Horowitz and Chair-elect of the NVCA Board of Directors, and Ali Behbahani, MD, Partner at New Enterprise Associates (NEA), will testify on Thursday, July 14 before the Senate Committee on Small Business and Entrepreneurship at a hearing entitled, “Search for Capital: How Venture Capitalists and Angel Investors Fund Entrepreneurs and Startup Companies.”

“We are excited to have Ali and Scott participate in a conversation with senators on the vital role venture capital plays in spurring innovation and supporting American entrepreneurship,” said Bobby Franklin, President and CEO of NVCA.  (more…)

Venture Investors Raise $8.8 billion in Second Quarter to Invest in Innovative Startups

NEW YORK, NY – U.S. venture capital firms raised $8.8 billion for 67 funds during the second quarter of 2016, according to the Fundraising Report by Thomson Reuters and the National Venture Capital Association (NVCA).  The number of funds closed during the quarter was on par with the first quarter of this year, while dollar commitments registered a 37 percent decrease compared to the first quarter of 2016, which ranked as the strongest quarter for dollars raised by U.S. venture capital firms since the second quarter of 2006 when 79 funds raised $14.3 billion. (more…)

NVCA Cheers House Passage of Bills to Give Startups Access to Capital

WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement after the House of Representatives passed H.R. 4854, the Supporting America’s Innovators Act of 2016, and H.R. 4855, Fix Crowdfunding Act, introduced by Rep. Patrick McHenry (R-NC), Chief Deputy Whip and Vice Chairman of the House Financial Services Committee.  Included as part of the Innovation Initiative led by House Majority Leader Kevin McCarthy (R-CA), both bills would improve access to capital for startup companies.

“Financial capital is the lifeblood of innovative, high growth startups.  We are pleased to see Congress focused on proposals  to help startups access the capital they need to scale and hire new workers, which is critical for the entrepreneurial ecosystem and the American economy,” said Bobby Franklin, President and CEO of NVCA.  (more…)

Venture-Backed Biotechnology Companies Continue to Lead Charge to Public Markets as Tech Companies Remain on Sidelines

NEW YORK, NY – Twelve venture-backed initial public offerings (IPOs) raised $893.9 million in the second quarter of 2016, according to the Exit Poll Report by Thomson Reuters and the National Venture Capital Association (NVCA).  IPO activity in the second quarter marks a 56 percent increase by dollars and a 100 percent increase by number of offerings compared to the first quarter.  For merger and acquisition (M&A) activity, sixty-one venture-backed M&A deals were reported in the second quarter, 11 of which reported an aggregate deal value of $9.0 billion.

“Biotech IPO activity continues to be the bright spot to an otherwise sleepy IPO market for venture-backed companies,” said Bobby Franklin, President and CEO of NVCA.  “With Twilio making its anticipated debut on the New York Stock Exchange in June, we will be watching closely to see if this finally opens the doors for other venture-backed technology companies to float on the public markets.  (more…)

NVCA Joins SIFMA and Chamber of Commerce in Filing Amicus Brief in Case Before Supreme Court

Increased State Court Litigation and Class Actions Adversely Impact High-Growth Startups

WASHINGTON, DC – The National Venture Capital Association (NVCA) joined the Securities Industry and Financial Markets Association (SIFMA) and the U.S. Chamber of Commerce in filing an amicus brief with the Supreme Court of the United States in the case of Cyan, Inc., et al.  v. Beaver County Employees Retirement Fund, et al..  At issue is an increase in state court securities class action lawsuits that adversely impacts recently public venture-backed companies.  NVCA believes federal courts have exclusive jurisdiction over the types of cases at issue in this case.

“Fewer and fewer venture-backed companies are choosing to go public, and we should be doing all we can to make the public markets more hospitable to high-growth companies that want to access them to scale and grow,” said Bobby Franklin, President and CEO of NVCA. (more…)

House GOP Tax Plan Good Start But More Needs to Be Done to Encourage Entrepreneurial Activity and Startup Creation

WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement after House Speaker Paul Ryan (R-WI) and Congressman Kevin Brady (R-TX), Chairman of the House Ways and Means Committee, unveiled the House Republican blueprint for tax reform.

“The tax code impacts the entrepreneurial ecosystem in two major ways—one in which tax policy has been effective and second where reform is desperately needed.  Startups generally have to operate for years using investment capital to create and develop a novel product or service, and so the investment environment is absolutely critical to entrepreneurship,” said Bobby Franklin, President and CEO of NVCA.  (more…)

Ratcliffe Bills Make it Easier for DHS to Access Innovative Cybersecurity Solutions

WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement after the House of Representatives passed H.R. 5388, the Support for Rapid Innovation Act of 2016, and H.R. 5389, the Leveraging Emerging Technologies Act of 2016,  introduced by Congressman John Ratcliffe (R-TX), Chairman of the House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies.  Featured as part of the Innovation Initiative led by House Majority Leader Kevin McCarthy (R-CA), the bills would make it easier for the Department of Homeland Security (DHS) to access innovative cybersecurity solutions by requiring the federal agency to address barriers that inhibit venture-backed cybersecurity startups from delivering their products and services via the federal procurement process. (more…)