Two Silicon Valley law firms released their quarterly reports on venture capital terms and funding recently. The Q2 reports from Fenwick & West and Cooley Godward both indicate that the frozen venture capital markets may be thawing a bit.
Cooley Godward even includes "Data Reveals Early Signs of Potential Improvement" in their title.
An interesting data point, according to Fenwick & West, is that the health care industry received 42% of Q2 VC investments and IT 37%. This is the first quarter since the data has been tracked that more VC money was invested in health care than IT.
Other interesting data from the reports include:
1. Roughly 600 VC deals were announced in Q2. This is up a bit from Q1, but down around 30% from the same quarter last year. The reason I use so many qualifiers is there are multiple data sources with different numbers and definitions. This data is from Fenwick & West's report.
2. The amount of money raised by VCs was lowest since 2003. This continues the trend towards a smaller VC industry.
3. There were only 3 venture backed IPO's in Q2. This was actually an improvement over prior quarters.
4. The median A round pre-money valuation increased slightly to $4.4 million in Q2.
5. The venture capitalist confidence index was up.
Emergent Research assists a small number of early stage technology companies with fund raising. And while raising money is still very, very hard we are also seeing an improvement in the funding climate.