CCCA Economic Dashboard: October 18th, 2013

October 22, 2013 10:20 by Clayton Reeves in Capital Markets, Economy, Financing  //  Tags: , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of October 18th, 2013. Click here to view a larger image.

Increasing Seed Valuations Making Series A Rounds Difficult

October 18, 2013 08:55 by Clayton Reeves in Capital Markets, Economy, Financing, M&A, Private Equity, Venture Capital  //  Tags: ,   //   Comments (0)
As reported by Pitchbook, seed valuations have increased 62.5% from 2009 through the first three quarters of 2013 for a cumulative annual growth rate of 13.8%. Meanwhile, Series A valuations are increasing, but at a slower rate, from $6.8 million in 2009 to $8.9 million. This 30.8% growth represents an annualized rate of 10.3%. Inflated seed-stage valuations may be having an effect on a startup's ability to raise funding in the Series A round, as seed investors want to see appreciation in their investment, while Series A investors believe the seed valuation was too high. Source: Pitchbook As seed-stage investments increase, companies are finding it more difficult to raise Series A financing.  This is at least partly due to a shift in VC investment philosophy, which has seen the share of seed-stage investments grow as a proportion of total VC investments over the last three years.  VC firms are trying to pick out winners earlier, and get them for a reasonable price.  The competitive bidding, however, is causing those valuations to increase.  It will be interesting to see how this plays out over the next several years, and if the Series A crunch will continue. Read the entire article here.

CCCA Economic Dashboard: October 11th, 2013

October 15, 2013 10:55 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of October 11th, 2013. Click here to view a larger image.

Economic Dashboard - October 4, 2013

The following is the Economic Dashboard for October 4, 2013. [More]

CCCA Economic Dashboard: September 27th, 2013

October 1, 2013 10:04 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of September 27th, 2013. Click here to view a larger image.

CCCA Economic Dashboard: September 6th, 2013

September 9, 2013 12:12 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of September 6th, 2013. Click here to view a larger image.  

Q2 Deal Multiples Update

August 21, 2013 10:45 by Clayton Reeves in Capital Markets, Economy, M&A  //  Tags: , , , , ,   //   Comments (0)
The market was widely unchanged from Q1 to Q2 2013.  Multiples remained comparable to the quarter prior, and there remained a significant premium in play for larger companies. - The median EBITDA multiple for all deals was 6.07x.- The median revenue multiple for all deals was 1.06x.- The median debt percentage for all deals was 57%.- The average time to close a deal was 15 weeks. One of the most interesting factors was the push away from only companies with topline growth; in the most recent quarter,  33% of the acquired companies saw flat or shrinking revenue in the year prior to acquisition, while respondents anticipate that 90% of the companies acquired in 2Q will see heightened revenue in the year ahead.  Last quarter, very few companies would invest in a company without topline growth.  It looks like the competition between buyers may be forcing the hand of some participants to go outside their normal constraints. Click here to read the report from Pitchbook.

CCCA Economic Dashboard: August 16th, 2013

August 19, 2013 13:36 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of August 16th, 2013. Click here to view a larger image.

CCCA Economic Dashboard: August 9th, 2013

August 14, 2013 15:08 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of August 9th, 2013. Click here to view a larger image.

CCCA Economic Dashboard: August 2nd, 2013

August 6, 2013 10:22 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of August 2nd, 2013. Click here to view a larger image.

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