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…)

NVCA Saddened by Passing of Venture Icon David Morgenthaler

Morgenthaler Rooted in DNA of NVCA as Early Founder and Past Chair of Organization

WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement after the passing of venture capital icon David Morgenthaler, Founder of Morgenthaler Ventures and past Chair of the NVCA Board of Directors. (more…)

NVCA Cheers Passage of Bills by Homeland Security Committee to Open Procurement Process to Cybersecurity Startups

Federal Agencies Unable to Access Innovative Cybersecurity Solutions Due to Difficulties Startups Face Accessing Procurement Process

WASHINGTON, DC – The National Venture Capital Association (NVCA) issued the following statement today after the House Committee on Homeland Security passed the Support for Rapid Innovation Act of 2016 and the Leveraging Emerging Technologies Act of 2016, both introduced by Congressman John Ratcliffe (R-TX), Chairman of the House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies. (more…)

Fostering Innovation Act Would Help Startups Go Public

WASHINGTON, DC – The National Venture Capital Association (NVCA) today came out in support of H.R. 4139, the Fostering Innovation Act.  Sponsored by Reps. Kyrsten Sinema (D-AZ) and Michael Fitzpatrick (R-PA), H.R. 4139 would reduce the significant and sometimes overwhelming costs for small capitalization companies to go public, encouraging more startups to access the public markets. (more…)