With the onset of the COVID-19 crisis in March, we decided
to include April data in our first 2020 report to better
illustrate any early indicators of effects of the pandemic on
the financing environment. Additionally, we have broken out
specific statistics by month and industry (technology/life
sciences/other) to offer more targeted insights. During the
first four months of 2020, Cooley handled 465 disclosable
deals representing more than $13.4 billion of invested
capital. Median pre-money valuations remained relatively
strong across deal stages, though valuations did decrease
in Series C transactions. In a possible preview of future
quarters, the percentage of down rounds increased to 16%
of transactions during April, a level not seen since Q4 2016.
Q1 + April 2020 – Tip of the Iceberg?
Deal terms during the four month period were mixed. The
percentage of deals using full participating liquidation
preferences decreased to 7.4% of transactions in April,
compared to 7.6% of transactions from January to March.
However, there was a slight increase in the percentage of
deals involving recapitalizations compared to prior quarters.
This will be a data point to monitor in the coming months.

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