UC Berkeley and NVCA Launch VC University, A New Educational Program Providing Online and Live Events for the U.S. Entrepreneurial Ecosystem

WASHINGTON, DC – The University of California, Berkeley, School of Law, through its Startup@BerkeleyLaw initiative, and the National Venture Capital Association (NVCA) are delighted to announce their partnership and launch of VC University, an educational program providing practical training on venture finance for entrepreneurs, investors, attorneys and others interested in emerging company finance. Participants can access VC University through the online certificate program or by attending one of the in-person programs held in emerging venture ecosystems across the United States, called VC University LIVE. In 2019, VC University will partner with the Center for Venture Capital and Private Equity Finance at the University of Michigan Ross School of Business and the A. B. Freeman School of Business at Tulane University to bring VC University LIVE to the Midwest and South. (more…)

NVCA Unveils Foreign Investment Updates to Model Legal Documents

WASHINGTON, DC – As a continuation of the National Venture Capital Association’s (NVCA) commitment to convening the entrepreneurial ecosystem and making available resources to support new company formation, NVCA today unveiled updates to its model legal documents. Shepherded by the NVCA General Counsel Advisory Board and Stephen Heifetz and Josh Gruenspecht of Wilson Sonsini, the updates to the NVCA Model Legal Documents address the recent changes to foreign investment into the U.S. from the Foreign Investment Risk Review Modernization Act (FIRRMA), which expanded the scope of the Committee on Foreign Investment into the U.S. (CFIUS) to include non-controlling investments into U.S. companies if certain factors are met. The changes announced today include changes to the model Term Sheet and an insert for a Limited Partnership Agreement. (more…)

Emerging Technology Definition Must Protect American Innovation

WASHINGTON, DC – The National Venture Capital Association (NVCA) recently made formal recommendations in the Commerce Department’s rulemaking process to define so-called “emerging technologies” that will be subject to export controls. These newly defined emerging technologies will also feed directly into the Foreign Investment Risk Review Modernization Act (FIRRMA) process, and certain investments into these types of companies may trigger a CFIUS filing. In announcing the comment period, Commerce asked for feedback on 14 categories that includes AI/machine learning, 3D printing, biotechnology, and several other technology areas that are major focuses of U.S. startups and venture investment. (more…)

US Venture Capital Investment Reached $130.9 Billion in 2018, Surpassing Dot-Com Era

SEATTLE – January 10, 2019 – By the end of 2018, the venture industry deployed $130.9 billion in US-based startups, surpassing the all-time high in 2000 and illustrating the maturation of the VC ecosystem, according to the PitchBook-NVCA Venture Monitor. The quarterly report is the authoritative source on venture capital activity in the US entrepreneurial ecosystem and is jointly produced by PitchBook and the National Venture Capital Associate (NVCA). With $75.7 billion in VC dry powder, investors funneled capital into the startup ecosystem at a record pace in 2018, boosting deal sizes across the entire VC spectrum. Mega-deals continued to dominate the dealmaking environment, increasing in count by 91.3% over 2017. The strength of dealmaking over the last several years led to a strong exit market in 2018 with elevated exit sizes driving total value to $122.0 billion. IPOs returned greater than 50% of exit value for the second straight year as IPOs and buyouts continued to scrape away at M&A’s lead as a proportion of exit count and value. Similar to the record dealmaking environment, 2018 was also a banner year for venture fundraising as VCs raised over $55.5 billion across 256 vehicles, the highest total capital raised recorded. (more…)

NVCA Supported NOL Reform Makes Progress Towards Passage

WASHINGTON, DC – The National Venture Capital Association (NVCA) was delighted to see continued progress on net operating loss (NOL) reform with the inclusion of the “American Innovation Act of 2018” in the end-of-year tax package, which will be voted on in the House of Representatives tomorrow. The bill includes a proposal sponsored by Rep. Erik Paulsen (R-MN) to protect the NOLs of startups by allowing them to carry forward their losses and R&D tax credits accrued in the first three years of the start of a company’s active trade or business without regard to Section 382 of the tax code, which currently can create an unintentional tax penalty for startups. (more…)

Mike Maher Presented with NVCA Industry Impact Award

WASHINGTON, DC – The National Venture Capital Association (NVCA) announced today that Mike Maher, formerly CFO at U.S. Venture Partners (USVP), is the 2018 recipient of the NVCA Industry Impact Award. The Industry Impact Award is dedicated to recognizing CFO, operations, and compliance professionals at venture firms who have provided an exceptional public service to the VC industry through the dedication of their expertise, resources, and commitment to the NVCA CFO Task Force. (more…)

NVCA Recommends Volcker Rule Reforms to Encourage Investment into U.S. Startups

WASHINGTON, DC – The National Venture Capital Association (NVCA) recommended key changes to the Volcker Rule in a proposal submitted yesterday in response to multiple federal agencies’ request for comment regarding the “covered fund” definition under the Volcker Rule. NVCA’s letter outlines the harmful consequences that the broad scope of the covered fund provision has had on the startup ecosystem. (more…)

Investment in Venture Capital-backed Companies on Pace to Exceed $100 Billion By End of 2018

Mega-Funds Fuel Strong Dealmaking, Particularly in Late Stage Startups and Unicorns as Investors Compete Fiercely for Deals; Several Outsized Exits Drove Exit Value & Provided Much-Needed Liquidity

SEATTLE, WA October 9, 2018 – In the third quarter of 2018, investment into US venture capital-backed companies topped $27.8 billion, pushing 2018’s total venture capital (VC) deal value to $84.3 billion. At this pace, 2018 could hold the mark for most venture capital invested in the US in a single year, according to the PitchBook-NVCA Venture Monitor, the authoritative quarterly report on venture capital activity in the entrepreneurial ecosystem jointly produced by PitchBook and the National Venture Capital Association (NVCA). Findings reveal 2018 median VC deal sizes experienced double-digit percentage growth across all stages compared to 2017, the highest jump since 2015. The steady increase in deal sizes can be attributed to the growing number of mega-funds raised, as investors increasingly view larger vehicles as a competitive advantage to invest in high-quality startups. This can be seen by the growing proportion of venture investment in the late stage, which made up nearly 23% of total VC deal count, the highest percentage since 2011. Additionally, the VC exit market has shown signs of strength, with $20.9 billion exited across 182 deals in 3Q, bringing the yearly total to $80.4 billion. Sustained dealmaking in the later stage of the VC market is expected to drive more outsized exits for the duration of this market cycle, suppressing investor concerns over liquidity. (more…)

Cassie Ann Hodges Named Director of Communications for NVCA

WASHINGTON, DC – The National Venture Capital Association (NVCA) today announced the appointment of Cassie Ann Hodges as Director of Communications effective immediately. Hodges comes to NVCA from the United Nations Foundation, where she served as Officer of Communications.

“I am very excited to welcome Cassie Ann to the NVCA team. Her diverse background in global and domestic strategic communications and stakeholder outreach will be a major asset to NVCA,” said Bobby Franklin, NVCA President and CEO. “Her deep expertise with entrepreneurial, membership and advocacy communications will be critical to NVCA as we continue our ongoing efforts to better serve the venture community, startups and entrepreneurs. We are thrilled to add someone as dedicated and dynamic as Cassie Ann to push our communications efforts to new heights.” (more…)

NVCA Cheers Continued Progress on NOL Reform

WASHINGTON, DC – The National Venture Capital Association (NVCA) was excited to see continued progress on net operating loss (NOL) reform with passage of the “American Innovation Act of 2018” in the House of Representatives. H.R. 6756 passed by a vote of 260-156. The bill includes a proposal to protect the NOLs of startups by allowing startups to carry forward their losses and R&D tax credits accrued in the company’s first three years without regard to Section 382 of the tax code, which currently can create an unintentional tax penalty for startups. (more…)