WASHINGTON, DC – The National Venture Capital Association (NVCA) today announced that Tim Curt, Managing Director at Warburg Pincus, is the 2017 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.
A long-time participant and leader of the NVCA CFO Task Force, Curt was honored for all his work in spearheading some of the group’s most detailed policy engagements as well as his active participation on the NVCA Board of Directors. He was instrumental in NVCA’s efforts to ensure that the Financial Accounting Standards Board’s rules and definitions are compatible with venture capital fund and private company business models. (more…)
Investors Pressed Pause on Fundraising as They Pump Capital into World’s Most Promising Companies, Meanwhile PE Firms Provide Much Needed Liquidity for VC’s Sluggish Exit Market
SEATTLE, WA – Investment into venture-backed companies in 2017 is on track to match or exceed dollars deployed in 2016, and if this pace holds, full-year 2017 venture capital (VC) dollars invested could be the highest in the past decade, according to the 3Q 2017 PitchBook-NVCA Venture Monitor. Venture investors deployed $21.5 billion to more than 1,699 venture-backed companies during the third quarter, bringing 2017’s total investment to $61.4 billion deployed across 5,948 deals to date. Mega-deals completed in the third quarter, like WeWork’s $3 billion infusion of VC, helped inflate deal value and have become the new normal in VC where investors pump larger amounts of capital into fewer companies, especially in the later stages. In fact, deals that carried a valuation of $1 billion or more represented less than 1 percent of 2017 deal count, but nearly 22 percent of the aggregate deal value. Meanwhile, private equity firms are increasingly providing an alternative liquidity option for a tepid exit market, which is pacing for the lowest number of exits since 2010.
“We are witnessing an upward trend in the amount of capital deployed while the number of companies receiving investment continues to shrink. However, if you peel back the onion, you uncover the influence unicorns are having on market dynamics, with investments by non-traditional investors into these companies inflating the overall dollars invested and valuations,” said Bobby Franklin, President and CEO of NVCA. (more…)
WASHINGTON, DC – The National Venture Capital Association (NVCA), entrepreneurs and startup companies today filed a motion for a preliminary injunction in federal court in Washington, D.C. to compel the Department of Homeland Security (DHS) to implement the International Entrepreneur Rule (IER) pending final judgment of the suit brought by NVCA and the other plaintiffs on September 19. Represented by the American Immigration Council and Mayer Brown LLP, NVCA and the other plaintiffs are challenging DHS’s delay in implementing the IER, arguing that because DHS did not solicit advance comment from the public on the delay, it violated clear requirements of the Administrative Procedure Act. Because NVCA and the other plaintiffs are substantially likely to prevail on the merits of the lawsuit, they are seeking the preliminary injunction so that the rule can be implemented immediately and DHS can accept and adjudicate applications from entrepreneurs while the case proceeds.
“Making it easier for talented entrepreneurs to come to the U.S. so that they can grow the next generation of American companies is a no-brainer. By all measures, their contributions would be a net positive for our country and our economy, which is why it’s confusing that the rule was delayed in the first place” said Bobby Franklin, President and CEO of NVCA. (more…)
WASHINGTON, DC – In its submission to the Office of the Comptroller of the Currency (OCC), the National Venture Capital Association (NVCA) today recommended key changes to the Volcker Rule that would support investment into high-growth companies in emerging ecosystems across the U.S. NVCA outlined all the ways in which the scope for the covered funds provision of the Volcker Rule is too broad and the impact the prohibition has had on the economy, while demonstrating that it was never Congress’s intent to include venture capital funds in the prohibition and changes are required to correct this regulatory overreach. (more…)
WASHINGTON, DC – PitchBook, the leading data provider for venture capital (VC), and the National Venture Capital Association (NVCA), the leading voice and advocate for the U.S. VC community, announced today the one-year anniversary of their data and publishing partnership. One year ago, the two organizations came together with the combined goal to increase clarity, insights and advocacy to advance the U.S. venture capital ecosystem. PitchBook serves as NVCA’s official data provider, enabling the association to present to U.S. policymakers data-driven research that demonstrates the positive and far-reaching impact of venture capital. Together, PitchBook and NVCA also jointly produce the PitchBook-NVCA Venture Monitor, the authoritative quarterly report on VC activity in the U.S. entrepreneurial ecosystem. (more…)
WASHINGTON, DC –The National Venture Capital Association (NVCA) today joined entrepreneurs and startup companies in filing a lawsuit in federal court in Washington, D.C. challenging the Department of Homeland Security’s (DHS) delay of the International Entrepreneur Rule (IER). Finalized by the Obama Administration, the rule would have allowed talented foreign-born entrepreneurs to travel to or stay in the United States to grow their companies for two and a half years with the possible extension of another two and a half years. NVCA and the other plaintiffs are represented by the American Immigration Council and Mayer Brown LLP.
Less than a week before the IER was to go into effect on July 17, DHS announced that the rule would be delayed and that DHS will be proposing to rescind the final rule. Because DHS did not solicit advance comment from the public on the delay, it violated clear requirements of the Administrative Procedure Act. As a result of the suspension of the IER, immigrant entrepreneurs that intended to use the rule have been and will be harmed. The U.S. economy will miss new businesses and jobs that would have been created but that unfortunately will now be created overseas. To remedy this unlawful action, the plaintiffs are asking the court to compel DHS to implement the IER, and begin processing applications of foreign-born entrepreneurs so that they can come to the U.S. on a temporary basis to grow their businesses. (more…)
WASHINGTON, DC – The National Venture Capital Association (NVCA) and 59 other organizations, individuals and interested stakeholders today expressed their shared disappointment that the Department of Homeland Security (DHS) delayed the effective date of the International Entrepreneur Rule and plans to rescind it entirely. In the comment letter organized by NVCA, the signatories encouraged DHS to use the delay to reexamine the decision to rescind the rule and prepare for accepting applications from talented foreign-born entrepreneurs beginning in March 2018 after the delay is over. Joining NVCA were leading national trade associations and advocacy groups, including FWD.us, Engine, ITI, and TechNet, as well as regional groups from the Midwest, New England, Mid Atlantic, Northeast and Southwest.
“President Trump has made winning the global competition for jobs a priority of his administration and we appreciate his stated focus on making our country the best place in the world to create a new enterprise,” the group of signatories wrote in the letter to DHS Acting Secretary Elaine Duke. (more…)
WASHINGTON, DC – The National Venture Capital Association (NVCA) today unveiled its submission to the Senate Finance Committee with tax reform proposals to encourage new company formation. These proposals were provided to the committee in response to a request from Senator Orrin Hatch (R-UT), Chairman of the Finance Committee, who called on stakeholders to provide ideas, proposals and feedback to the committee on how to improve the American tax system.
“Tax reform represents a huge opportunity to spur greater economic activity for the country and critical to that will be using this opportunity to reprioritize pro-entrepreneurship tax policy,” said Bobby Franklin, President and CEO of NVCA. (more…)
WASHINGTON, DC – The National Venture Capital Association (NVCA) today submitted comments to the Federal Communications Commission (FCC) in response to the notice of proposed rulemaking “Restoring Internet Freedom.” In its submission, NVCA advocated for robust net neutrality rules to allow startups to compete on a level playing field and to provide venture investors the confidence they need to make bold investments in technology and Internet startups.
“Venture investors assume incredible risk as they invest in an early-stage company and work with an entrepreneur to build a company into a prospering enterprise,” wrote Bobby Franklin, President and CEO of NVCA. (more…)
Fundraising Environment Remains Favorable with $130 Billion Raised since 2014 for Deployment to Entrepreneurial Ecosystem
SEATTLE, WA – Investors deployed $21.78 billion to 1,958 venture-backed companies during the second quarter, marking a significant uptick from the first quarter in capital invested while the number of companies receiving investment was stable, according to the PitchBook-NVCA Venture Monitor. Through the first six months of the year, 3,876 companies received $37.76 billion in financing, setting a pace to near or surpass the $71 billion invested last year, and confirming that the industry has leveled off after peaking in 2015. Looking to the second half of the year, venture investors will continue to deploy capital to high-growth startups, having raised more than $130 billion since 2014, including $11.4 billion raised in the second quarter of 2017 across 58 funds.
“Venture investment activity the last few quarters supports evidence from the field that the industry is in the middle of a self-correction as valuations come down and the marketplace cools off,” said Bobby Franklin, President and CEO of NVCA. (more…)