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Mid-Atlantic VCs Indicate Improving Investment Climate
12/04/2005. Year-end data released by the Mid-Atlantic Venture Association illustrates an improving market for venture investment in the mid-Atlantic region. Coming off an active investment quarter in Q4 2004, VCs forecast an even stronger investment period in the first quarter of 2005. 
US MoneyTree Survey Q2 2003
17/09/2003. US venture capital investment rose slightly in the second quarter of 2003 for the first time in two years, according to the PricewaterhouseCooper's MoneyTree Survey.
The status of anti-money laundering regulation and private equity
17/09/2003. The USA Patriot Act that was passed in October 2001 has undergone several amendments over the last couple of years. The Financial Crimes Enforcement Network of the Department of the Treasury intends to introduce new provisions in the coming months. Gregory T Pusch discusses what this could mean for the US private equity industry.
Overview of VC activity
05/09/2003. Canadian venture capital investment levels declined steadily throughout 2001 and 2002. But the fall was significantly less pronounced than it was for the US venture capital industry, according to this presentation by Macdonald & Associates.
USA Patriot Act update
02/09/2003. The majority of private equity funds will be exempt from the anti-money laundering provisions contained within the USA Patriot Act, explains Darcy Pertcheck of Nixon Peabody. But all must comply with the Act's underlying information sharing requirements.
Private equity update
19/08/2003. The US Federal Trade Commission has recently implemented rules for private investment funds and investment advisers that are not registered with the Securities and Exchange Commission. These rules are designed to protect customers' non-public personal information. Dechert discusses what this means for the private equity industry.
Venture capital and life sciences in Canada: A sniffle or a cold
07/08/2003. The amount of venture capital invested in Canadian life sciences companies fell for the third consecutive year in 2002, according to a report by Macdonald & Associates. But the life science sector's share of venture capital investment as a whole increased marginally from 17 per cent in 2001 to 19 per cent last year.
Disclosure and its impact on the private equity industry
07/08/2003. US public institutional investors are coming under increasing pressure to disclose their private equity fund performance data. But as Darcy Pertcheck of Nixon Peabody explains, this could just be the start of a long and slippery slope.
Raising money in a difficult environment
06/08/2003. Venture capital financing in the US life sciences market has plummeted year-on-year since the industry's peak in 2000. With increasingly fierce competition for venture funding Lawrence Wittenberg of Testa Hurwitz & Thibeault provides a step-by-step analysis of what a venture capital firm should be looking for in a biotech start-up.
A comparison of US and UK private equity funds
06/08/2003. In many ways US and UK private equity fund agreements are very similar. But there are crucial structural differences, explains Geoffrey Kittredge of Debevoise & Plimpton.
Goodbye yellow brick road: new compensation issues facing private equity managers
23/07/2003. Profit distributions may have plummeted since the US private equity market dived in 2001, but professional remuneration has so far continued to rise, says Howard Rosenblum of Testa, Hurwitz & Thibeault. Here he explores what he believes to be the future for management fees, performance accountability and clawbacks.
Alternative Market Perspective
09/07/2003. Buy-outs dominated the US private equity industry's deal flow in 2002, according to HIG's Alternative Market Perspective. But venture capital suffered significant cutbacks as it re-adjusted to the excesses of previous years.
Top-Tier VCs: The more things change the more they stay the same
02/07/2003. The negative downturn in the US venture capital industry, combined with increased pressure for disclosure, is set to consolidate the industry and alter the relationship between limited and general partners, according to Thomas Beaudoin of Testa, Hurwitz & Thibeault. Here he discusses whether the very best VCs will be able to escape this wholesale realignment and write their own rules.
The dividend window: liquidity options for private equity investors
25/06/2003. On 28 May 2003, President George Bush signed the Jobs and Growth Tax Relief Reconciliation Act. The act will mean that dividends and long-term capital gains are generally taxed at the same reduced rate of 15 per cent. Robert Seber and Richard P Wild of Dechert discuss the implications of the act for family-owned businesses and the portfolio companies of private equity funds.
US private equity funds: selected regulatory and tax issues
10/06/2003. The global private equity industry is set for continued growth over the next ten years, regardless of the current slump in the markets. Filippo Cinotti of Zini & Associates discusses several tax and regulatory issues that will affect the private equity market in the US in the coming years.
Disclosure of private equity fund data
28/05/2003. The confidentiality of US private equity fund data is increasingly under threat as publicly listed limited partners are being forced to reveal details of their investments. Malcolm Nicholls of Testa, Hurwitz & Thibeault discusses the implications for US private equity firms and the strategies that some firms are employing to avoid disclosure of sensitive information.
The USA Patriot Act and its implications for US private equity firms
14/05/2003. In recognition of the illiquidity and subsequent lack of suitability of private equity funds for money laundering activity, legislation proposed by the US government in 2002 has exempted private equity funds in America from some, but not all, of the USA Patriot Act's requirements. US law firm Brobeck explains the level of compliance required by private equity firms and the means by which the regulations may be enforced.
Hard days and sleepless nights for private equity firms
07/05/2003. There is little doubt that the US private equity market is experiencing tough times. But this could mean big rewards for those with the skill and resources to navigate the storm. Two leading private equity players discuss the potential pitfalls and pay-offs at Wharton Knowledge's annual private equity conference.
US Fund Tracker: April 2003
07/05/2003. April saw six new funds hit the fundraising trail, the largest, the WL Ross Japan Fund targeting $1bn for Japanese turnarounds.
Liabilities of general partners of venture capital funds: old legal theories create new business realities, part 2
30/04/2003. What legal pressure can limited partners bring to bear on general partners should they fail to live up to their responsibilities? In the second part of their overview of GP liabilities, James E Topinka and Carol Kerr of Coudert Brothers discuss the general partner as ‘alter ego' of its portfolio company.
Are we almost there?
30/04/2003. Venture capitalists throughout Silicon Valley are taking a greater interest in opportunities on the other side of the Pacific Ocean. Many have come to realise that Beijing now offers enormous potential, as well as other areas such as Shanghai and Bangalore. Rebecca Fannin of the AVCJ discusses these opportunities and the change in sentiment of US venture capitalists.
Caught in a hard place
30/04/2003. Lower bond yields and lower expected returns from equities have created a major problem for US pension funds. Where do they go now to boost their overall returns? Fennell Betson of Investment & Pensions Europe discusses the way in which US pension funds are turning to alternative assets, such as private equity, and how they arrive at expected returns for these areas.
Selected trends and developments in private equity compensation
16/04/2003. The freedom for small, entrepreneurial companies to provide stock options as a form of remuneration has been threatened in the US by new accountancy regulations. Michael J Nathanson of Hale and Dorr takes a look at some of the problems.
The deal drought: IPOs and M&As are down but not out
09/04/2003. Although transactions may be few and far between at the moment, there are still deals to be done in a down market, experts at a recent Knowledge Wharton conference believe. The ‘drought' is severe but not terminal.
PIPE Transactions: Part II - Legal Issues
09/04/2003. In this second of a two-part series on PIPE transactions (private investment in public equity), Michael A Conza of Testa, Hurwitz & Thibeault takes a further look at some of the legal issues to be addressed when structuring such deals.
US Fund Tracker: March 2003
02/04/2003. March saw two new venture funds enter the market and four final closes raising a total of $780m.
Total US venture capital report 2003
31/03/2003. The US venture capital market experienced a significant decline last year when compared to 2001. The weakening economy, however, did allow many investors to take advantage of opportunities in companies at favourable valuations, according to Growthink's annual report.
Canada's venture capital industry in 2002: summary observations
19/03/2003. The last months of 2002 proved more active for Canada's venture capital industry compared to the first thre quarters, according to Macdonald & Associates. Even so, the amount invested in Canadian companies by private equity firms slipped to C$2.5bn in 2002, down 35 per cent from the C$3.8bn invested in 2001.
PwC US Moneytree Survey Q4 2002
26/02/2003. Venture investment levels almost halved from $41.3bn in 2001 to $21.2bn in 2002. Investment levels are now below the total for 1998, when $21.6bn was invested in new companies, according to the PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree Survey.
Public nuisance
26/02/2003. With public markets in something approaching meltdown, private companies are valued higher than many equivalent public companies, says Michael V Copeland at Red Herring.
USA Patriot Act
19/02/2003. On 18 September 2002, the US Department of the Treasury released new regulations concerning the USA Patriot Act. Alan B Horn, Carl A Fornaris and Ileana Gomez of Greenberg Traurig give an outline of the issues that affect venture capital funds, taking into account recent moves to exempt some firms.
Canada's venture capital industry in Q3, 2002: an overview
18/02/2003. Following a major contraction in the second quarter, the Canadian venture capital industry experienced an increase in activity in the third quarter of 2002. Canadian venture capitalists invested C$475m in Q3, up seven per cent on the C$445m invested in Q2.
Exposed!
28/01/2003. The increasing demand in the US for pension funds to publish information about private equity fund performance has caused a furore within the industry. Some have even predicted that it will cause the asset class to become commoditised – and thus less lucrative – industry. But, says Tom Stein of Red Herring, this isn't very likely.
The joy of SOX
15/01/2003. The recent Sarbanes-Oxley Act will have a significant impact on the US mergers and acquisitions market, both positive and negative. Charles Nathan of Latham & Watkins discusses the impact that the reforms will have on private equity involvement in M&A and the future IPO outlook.
Going Private: Corporate Adviser
14/01/2003. As corporate scandals and falling public markets erode the confidence with which people view public companies, Michael J Levitin, Steven S Snider and Kimble C Cannon of Hale & Dorr discuss the benefits and pitfalls of a decision to go private. There are various financial savings that may influence a company's decision to go private, including the elimination of accounting and legal costs associated with the now mandatory requirement for public companies to file quarterly reports with the SEC.
ERISA Plan Assets Regulation: 15 years on
07/01/2003. For the past 15 years the US private equity industry has been able to structure its funds according to the Plan Assets Regulation, registering as ‘venture capital operating companies' so that they are not subject to ERISA's compliance rules. Patricia Cashman of Testa, Hurwitz and Thibeault discusses the impact of the regulation as well as suggesting improvements.
Crowding out private equity: Canadian evidence
07/01/2003. Canada's aggregate pool of venture capital has actually been reduced rather than increased by the introduction of the Labour Sponsored Venture Capital Corporation (LSVCC), say Douglas Cumming of the University of Alberta and Jeffrey MacIntosh of the University of Toronto in this study of the Canadian venture capital industry.
Sponsored spin offs: the private equity fund as anchor investor
17/12/2002. One way for large corporates to find private equity buyers for non-core operations may be to spin them off. Paul S Bird and Peter F G Schuur of Debevoise discuss the legal and tax issues involved in structuring such an investment opportunity.
PwC US Moneytree Survey Q3 2002
10/12/2002. The third quarter brought no good news for the US venture community. Investment activity fell 26 per cent on the previous quarter to its lowest level for four years, according to the latest MoneyTree Survey from PricewaterhouseCoopers/Venture Economics/National Venture Capital Association.
Venture capital firms: getting the right rights
04/12/2002. A recent Department of Labor advisory opinion has at last clarified the ways in which venture capital firms can avoid ERISA's strict fiduciary mandates. Legal firm Palmer & Dodge explains.
Corporate reform hits home: Is there still a place for private equity fund managers on public company boards?
26/11/2002. The recently-enacted Sarbanes-Oxley Act of 2002 will have a substantial impact on the fiduciary duties of independent directors of public companies. Rufus C King of Testa, Hurwitz & Thibeault points out the problems inherent in the new burdens for fund managers considering whether or not to remain on the boards of companies they have helped to go public.
Total US venture capital report - Q3 2002
26/11/2002. As with the previous quarter, total US venture capital funding in the third quarter 2002 continued to fall. Some 25 fewer companies raised financing rounds this quarter and there was a 35 per cent drop in the number of companies that raised $20m or more. Growthink's total US venture capital report gives an overview of the industry, highlighting the regions and sectors that have performed well this quarter.
Recent amendments to the Hart-Scott-Rodino Act
26/11/2002. Anyone involved in mergers and acquisitions should take note of recent developments and amendments to the Hart-Scott-Rodino Act. The Act, originally passed in 1976, has undergone recent amendments that relax pre-merger filing requirements. Heller Ehrman White & McAuliffe summarise the changes.
Anti money-laundering provisions
26/11/2002. Following months of uncertainty, the US Treasury department issued a proposed final rule on the USA Patriot Act in September that excludes certain private equity funds from the obligation to comply with the anti money-laundering requirements. Nixon Peabody explains the new proposal and what it means for private equity firms.
Camps face off on ‘transparency'
28/10/2002. Following the disclosure of UTIMCO's private equity fund performance, the San José Mercury announced that it has filed a law suit in an attempt to force Calpers to do the same. Beth Healy of The Boston Globe wonders what the upshot will be.
Risk capital - the venture capital market
16/10/2002. Venture capital has grown in popularity in Canada although it still remains firmly in the shadows of its neighbour, the US. However, this has also worked to its benefit, as the massive downturn felt by the US has not hit Canada so hard. This article by Strategis discusses the growth of the industry in Canada compared to the US
Pay-to-play provisions - traps for the unwary
15/10/2002. In today's difficult climate pay-to-play provisions, designed to encourage all co-investors to support portfolio companies even in a down round, are becoming increasingly prevalent. They can be useful in ensuring that investors can spread the risk and the capital required to keep companies going during a tough period. But beware, says Richard Kimball of Hale and Dorr, there can be pitfalls and problems in crafting such provisions. He gives an overview of some of the issues that should be addressed when instituting pay-to-play provisions.
Canadian M&A activity in the 12 month period to July 2002
01/10/2002. The 12 months to July 2002 saw a considerable slowdown in M&A activity in Canada. Trends for the region tend to follow those shown on a global scale with telecommunications, the media and technology suffering the most. This survey from Dealogic examines the year for the Canadian M&A market and highlights the areas that are continuing to drive the market at this difficult time.
Canada's venture capital industry in Q2 2002: an overview
01/10/2002. The Canadian venture capital industry invested just CAN$416m in the second quarter of 2002, 69 per cent down on the same period in 2001. It is the first major contraction of Canadian venture investment since the bursting of the TMT bubble in 2000, according to Macdonald & Associates.
Rethinking the aviation industry
01/10/2002. Can today's major carriers fly their way clear of the airline industry's problems? Only if they make concerted long-term efforts to improve their profitability by changing their fleet structures, their labor agreements, and their basic operating assumptions.
Money laundering prevention in the US
17/09/2002. With an increased focus on money laundering in the US the private equity industry now faces new regulations. Congress is now of the opinion that private equity funds could potentially act as financial havens for terrorists and thus the Patriot Act was passed in October 2001. Zini & Associates discuss the overall money laundering regulations in the US and explains the requirements of the Patriot Act for private equity firms in more detail.
Structure of the venture capital market
10/09/2002. The Canadian venture capital landscape has historically been populated by labour-sponsored venture capital corporations that raise funds from small investors through the provision of government tax incentives. However, to survive the current economic climate, the industry must follow the US and begin to court the larger institutions, says the Small Business Policy Branch at Industry Canada.
PwC US Moneytree Survey Q2 2002
10/09/2002. Venture capital investment continued its downward spiral in the second quarter of 2002. Total disbursements fell to $5.7bn, an 11 per cent decrease on the previous quarter, according to the latest PwC/Venture Economics/National Venture Capital Association Moneytree Survey Q2 2002.
Potentially attractive and timely private equity opportunity: US high- yield CBO equity
10/09/2002. At a time of unpredictable public markets, investors are looking at alternative asset classes. R Todd Ruppert of T Rowe Price suggests that a high yield CBO equity investment may be one way to diversify a private equity portfolio and keep returns on track.
The state of the venture industry - where do we go from here?
27/08/2002. The state of the venture industry is currently not looking too good and, unless there is a dramatic turnaround, we could even see a negative figure for the net capital raised by venture funds in 2002. Robin A Painter of Testa, Hurwitz and Thibeault assesses the market and outlines what must be done in the industry to recover its lost ground.
Venture financing and the Hart-Scott-Rodino Act
22/07/2002. Venture capital investors should be aware that they may be required to comply with the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in venture financing transactions. Whether a particular transaction is subject to the Act will depend on the facts of the transaction. Richard Kimball of Hale & Dorr looks at the implications of the Act.
2001 IPO market review
15/07/2002. The IPO market was sluggish throughout 2001 in the face of unreceptive capital markets, cautious investors and economic recession. The 91 IPOs in 2001 formed the lowest annual total since the 62 IPOs in 1979. With no IPOs between August and early October, September 2001 was the first month since 1975 without a single new offering. But what is the outlook for the rest of 2002, ask Hale & Dorr.
Canadian VC confidence survey
03/07/2002. Canadian venture capitalists are beginning to appear a little more upbeat about the future of the industry. The Canadian Venture Capital Association and Deloitte & Touche discover that investors are showing a renewed optimism in a struggling asset class.
Tax considerations in structuring US-based private equity funds
02/07/2002. When forming a US-based private equity fund, fund managers must address tax and other structuring issues. Patrick Fenn and David Goldstein of Akin, Gump, Strauss, Hauer & Feld examine the investor-level tax issues that managers face when deciding which type of structure to use and in which jurisdiction the fund should be domiciled.
To be or not to be . . . an SBIC
25/06/2002. Originally set up to expand the amount of capital available to US business, the SBIC structure has recently become popular among venture capitalists. The scheme may help VCs raise sufficient capital, but it does contain some pitfalls for fund managers and investors alike say Heather M Stone and Joseph A Hugg of Testa, Hurwitz & Thibeault.
The numbers underscore just how bleak the IPO market is
25/06/2002. Two years ago the Nasdaq imploded and venture capitalists have found little room for optimism since. Beth Healy of The Boston Globe examines the decline of the stock markets and assesses the impact that this is having on exits.
US: Focus on fundamentals
25/06/2002. Nowhere has the global rise of the biotechnology sector been more apparent than in the US. Indeed, investors are now positively embracing the sector. Scott Morrison of Ernst & Young addresses the rise of life sciences and discusses what the future may hold.
Canada's venture capital industry in Q1 2002
24/06/2002. With forecasts of a more robust economy on the horizon, Canada's venture capital industry nonetheless began 2002 on a cautious footing. In the first quarter, the industry invested $785m to 187 Canadian companies, down 14 per cent from the $907m disbursed in Q1 2001, according to figures from Macdonald Associates.
‘PFIC' means potential taxes on foreign investments
18/06/2002. US private equity funds and foreign private equity funds with US investors frequently invest in portfolio companies organised outside the United States. Among the many challenges faced by funds investing in foreign corporations, the US passive foreign investment company (PFIC) tax rules can have a significant impact on investment returns. William J Corcoran, Michael J Sutton of Testa, Hurwitz & Thibeault offer some guidance.
Q1 2002 Money Tree Survey
18/06/2002. US venture capital investments continued their pattern of decline falling 24 per cent, to $6.2bn in the first quarter, according to figures released by PwC/Venture Economics and National Venture Capital Association MoneyTree Survey.
Bigger isn't necessarily better, so firms look to cut fund size
17/06/2002. With a reduction in investment opportunities for private equity funds, limited partners are becoming more wary of committing capital to the larger, billion-dollar funds. Beth Healy of The Boston Globe examines how fund managers are addressing this problem.
New anti-laundering legislation and regulations to create new compliance requirements for private equity funds
04/06/2002. As the last steel girder is removed from Ground Zero, the effects of 11 September are still felt across all industries. Here, PricewaterhouseCoopers discusses the impact of the USA Patriot Act on the private equity industry.
Where is the money?
29/05/2002. Venture capital has come a long way since its early beginnings as a boutique industry. The boom of 1999/2000 has been quickly followed by a dramatic decline as the technology markets crashed and the IPO exit route became virtually non-existent. John F Ince of Upside assesses what the future may hold for the US venture capital industry.
The impact of downturns on private equity vintages
23/05/2002. The events of 11th September all but halted private equity activity. This gave LPs and GPs alike the opportunity to prepare for a recession that seemed to be looming both in the US and in Europe. Lim Hock Tay of GIC Special Investments looks at the lessons learned from previous downturns and how private equity investments both suffered and managed to rebound.
Valuations: a symptom in need of a cure
20/05/2002. There has been a significant decline in the values of venture fund portfolios. Consequently, the spotlight has been focused on the valuation methodologies used by general partners and, more importantly, the transparency of information provided by general partners to their limited partners. Thomas A Beaudoin of Testa Hurwitz & Thibeault reports further.
Liquidity options remain limited
15/05/2002. Venture capitalists are finding that opportunities for exiting their investments are still declining. The IPO window will continue to be shut for the foreseeable future and M&A activity in the first quarter of 2002 has also been affected, according to recent figures from the NVCA and Venture Economics.
Commonfund Benchmarks Study 2002
14/05/2002. In an effort to diversify their portfolio and pick up increased returns, US higher education endowments and foundations have shifted more of their funds into alternative investments, with 43 per cent having some allocation to private equity. The Commonfund Institute conducts an annual survey on this activity and asked 53 respondents from the 2001 survey what their predictions and intentions were for 2002.
US venture capital fundraising plummets in Q1
08/05/2002. US private equity fund-raising suffered another dismal quarter in the first three months of the year, falling 56 per cent on the fourth quarter to just $2.2bn, according to figures from Venture Economics and the National Venture Capital Association. 44 funds managed to close in the first quarter, compared with 65 in the fourth.
Europe vs US
07/05/2002. The saturation and overcrowding of the US market has encouraged investors to look to Europe. As well as there being a wealth of opportunities, competition on the Continent is less fierce. But, to what extent can the US investment style be successfully exported without making adjustments, asks Claus Stenbaek of Danske Private Equity.
An introduction to registration rights
30/04/2002. Exit strategy is one of the most important items on any private equity investor's checklist. Many investors, particularly in new economy investments, look to a US listing for this exit. But simply getting the initial listing of the target company in the US is only half the battle, says Andrew Ostrognai of Debevoise & Plimpton. The investor must also be able to register its shares for sale to the public after IPO - a process that can be complex and that needs to address a number of issues.
Guidance for compliance with the USA PATRIOT Act
30/04/2002. On 26 October, 2001, President Bush passed the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (PATRIOT). The act contains amendments to existing federal anti-money laundering (AML) law and now extends to venture capital funds and the firms that manage them. This guidance document issued by the NVCA discusses the new laws and reveals that those providing private equity firms with capital will find themselves under greater scrutiny in the future.
LPs consider ‘cash-in and cash-out' policy
23/04/2002. The GP and LP relationship has become rather heated of late, with many investors seeking new and raised terms from their fund managers. One key area is performance management. Carolina Braunschweig of Private Equity Week looks at the new proposals from the ILPA, which seek to abolish IRRs and offer instead a more transparent method of measuring performance.
Total US private equity funding report
23/04/2002. The private equity market has finally begun to rebound, according to Growthink's annual report. For the first time in two years, there has been an increase in the number of companies receiving funding. But, the amount raised by these companies did decline, falling from $8.3bn in 2000 to $8.1bn last year.
Private equity funds of funds: a checklist of legal and regulatory issues
15/04/2002. Funds of funds play an important role in providing investors with diversification in private equity commitments. But, these funds face a barrage of regulatory and tax issues in the US and this should be a matter of concern to everyone in the industry, say Joseph A Hugg and David W Tegeler of Testa Hurwitz & Thibeault.
Uncharted territory
10/04/2002. Have investors in the venture capital industry become more cautious since the burst of the dot-com bubble and the events of 11 September? Many industry players believe that the downturn is an inevitable part of the cycle of a maturing industry; others see it as the beginning-of-the-end of an industry that has already enjoyed its most successful years. John F Ince of UPSIDE examines the state of the venture capital business in the US and discusses what the future holds for this industry.
The state of the market
10/04/2002. Private equity evolved throughout the 1990s into a means for institutional investors to improve the long-term risk/return profile of their portfolios. The downturn in the industry over recent years, however, is forcing investors to reassess the benefits of the asset class. Ivan Vercoutere and Giacomo Biondi Morra of LGT Capital Partners argue that the private equity industry is merely returning to a state of normality after a period of euphoria and that now is a good time to invest.
Aftermath of the bubble, the defaulting investor
09/04/2002. The face of the limited partner has changed. Gone are the days of guaranteed commitment from well-financed institutions at the initial close. Daniel Finkleman of Testa, Hurwitz & Thibeault offers advice for the GP who has found that one of his LPs cannot meet commitments as a result of plummeting personal fortunes.
Biomedicine: The next wave for California's economy
03/04/2002. Biotechnology stocks are down and several promising biotech drugs have recently been hitting regulatory walls. However, the future looks bright for California's biomedical cluster, according to this report from PwC and the California Healthcare Industry.
The Silicon Valley venture capital confidence survey, Q1 2002
26/03/2002. Following one of the most dismal years for the venture capital community in nearly a decade, venture capitalists responding to the Silicon Valley venture capital confidence survey, conducted by Deloitte & Touche, have a positive outlook for the economy in 2002. For the first time since the survey's inception, the majority of respondents expect the overall economic climate to improve during the next six months, but see no return to the heady investment levels of 1999 and 2000.
Jilted by broadband
20/03/2002. In its most basic form broadband is an ‘always on' connection with data transfer speed that is faster than those of dial-up modems. Despite initial interest, without a surge of high-speed internet access, the technology industry, and the economy at large will remain stalled, argues Michael Copeland and Om Malik from Red Herring. New technologies from start-ups may provide a solution to promote and develop this.
US private equity in 2001
11/03/2002. Despite steep falls from 2000's levels, 2001 was the third best year in the history of US private equity in both total dollars raised and total dollars invested in companies. John Taylor, the vice president of the NVCA, looks at the year 2001, analysing developments and trends, asking what lies in store for 2002.
Strategies in global venture capital for the 2002 recovery
11/03/2002. Now that the technology hype has died down, the opportunities for the next generation of venture capital fund managers is genuinely exciting. In his annual presentation to Canada's McGill University, Jim de Wilde, previously a professor at the University of Ontario, explores the opportunities available, with a particular emphasis on the Canadian market.
Canada's venture capital is really shelter capital
06/03/2002. The Canadian government has taken a number of steps that will encourage investors to commit to the country's venture capital funds. But, as Mark Schwartz of Piper Marbury Rudnick & Wolfe LLP argues, recent tax reforms have not gone far enough.
What's a VC to do with all that cash?
05/03/2002. There are currently unprecedented levels of uninvested capital in the hands of US VC firms. Many raised vast amounts during the internet boom, and, now that comapny valuations have dropped, they are finding it difficult to invest it. John Cooke from the Seattle Post Inteligencer Reporter looks at the challenges posed by these piles of untapped capital.
O Canada - US start-ups look north for funding.
28/02/2002. While US venture capitalists have been scaling back their investments, VCs from a little further north have been assessing the opportunities. Less exposed to needy technology companies, Canadian venture capitalists are finding some bargains south of the border that have been ignored by their US counterparts, says Lawrence Aragon of Red Herring.
2002 fearless forecast
19/02/2002. Investment managers in the US will shift away from alternative assets in 2002, particularly private equity and venture capital, according to this survey by William M Mercer.
Economic impact and public policy implications
18/02/2002. This report by Michie Slaughter at the Kauffman Center identifies major trends and developments that have made entrepreneurship a significant social and economic force in the United States. It provides an overview of why entrepreneurship is different from small business, and it presents a rationale for understanding why this area of study and research has been steadily gaining momentum over the last 20 years.
Distributing private equity funds to US investors
18/02/2002. With their home market in the doldrums, many US institutions are increasingly looking to invest elsewhere. And yet, overseas private equity firms have traditionally considered fund-raising in the US as particularly difficult and burdensome. In reality, however, many of the regulatory tax and legal barriers can be overcome says Geoffrey Kenyon and Martin Charmichael of Goodwin Procter LLP.
US sees record amounts of uninvested capital in Q4, venture investing down
13/02/2002. The amount of venture capital raised in the US fell by 39 per cent from $104.6bn in 2000 to $40.6bn in 2001, according to figures by Venture Economics and the National Venture Capital Association (NVCA). The Q4 total for 2001 was 80 per cent down on the previous year. These figures seem to back up anecdotal evidence suggesting that many investors were adopting a ‘wait and see' attitude at the end of last year in the uncertainty following the 11 September terrorist attacks.
Building biotech in Ohio - you can if you think you can
12/02/2002. This edited extract of a speech by Dan Eramian, Vice President Communications at the Biotechnology Industry Organisation, discusses the development of venture capital funding in the US biotechnology sector. It also looks at the emergence of biotech clusters and why they have formed.
Venture capital investment increases in Q4
05/02/2002. The economic and psychological climate for venture investing is beginning to improve after 18 months of steady decline, according to the PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree Q4 Survey. The survey also shows that despite an extremely difficult economic environment, $36.5bn was invested in the twelve months of 2001, ranking the year as the venture capital industry's third best in terms of total dollars invested.
Canadian budget 2001
01/02/2002. The latest federal budget, in Canada made changes to its rules on limited partnerships and amended the Income Tax Act to encourage more venture capital financing from domestic and foreign investors.
Cautious optimism from Canadian venture capitalists
28/01/2002. Venture capital investments may have been down in the third quarter relative to the same period of 2000, but Canadian VCs are cautiously positive, says this survey from Deloitte & Touche and the Canadian Venture Capital Association.
Canada's private equity market in 2001
22/01/2002. Canada's private equity industry is worth approximately C$36bn, according to a survey commissioned by Goodman & Carr and conducted by Macdonald & Associates. The industry has undergone a steady growth since its infancy in the 1980s, but it is still dwarfed by its neighbour, the US, whose industry is worth close to US$1,000bn.
Venture-backed IPOs begin to rebound in Q4
21/01/2002. Venture-backed IPOs staged a modest recovery in the fourth quarter of 2001 to make it the busiest period of an admittedly miserable year, according to figures from NVCA and Venture Economics. There were 14 VC-backed IPOs, compared with five in the third quarter and nine in both the first and second.
Canada's VC industry in 2001
15/01/2002. Several factors caused venture capital activity in Canada to slow in the first nine months of 2001. Here Macdonald & Associates analyses VC investment activity up to Q3 and the state of the industry following 11 September.
A new sheriff at the SEC
14/01/2002. There is a new sheriff at the Securities and Exchange Commission. On 3 August 2001, after seven years of SEC leadership under Arthur Levitt, President Bush appointed securities lawyer Harvey L Pitt as the twenty-sixth Chairman of the SEC. THT asks to what extent this will have an impact on the private equity industry.
BIS Quarterly Review December 2001 - International banking and financial market developments
14/01/2002. The terrorist attacks in the United States on 11 September brought uncertainty in global financial markets to a new level. During the summer, fading hopes for economic recovery had already weakened the major stock markets and problems in emerging markets had resurfaced. The attacks shook consumer and business confidence still further and reinforced prospects for a broad global slowdown. Nevertheless, once the initial shock had worn off, market participants again began to anticipate a recovery during the course of 2002, despite continued unfavourable macroeconomic data.
Building entrepreneurial networks
09/01/2002. Networking is an essential and effective tool for entrepreneurs, according to this report from the US National Commission on Entrepreneurship. Entrepreneurial networks can promote regional economic growth by allowing new entrepreneurs to learn from their peers and create successful fast-growing businesses as a result. This type of business can provide good deal flow for private equity firms.
PwC MoneyTree Survey Q3 2001
27/11/2001. It is hardly news any more that investment levels have plummeted. US venture capital investment slowed again in the third quarter to reinforce the mounting gloom across the sector. The amount invested fell to $6.5bn, down 23 per cent on the previous quarter and nearly 70 per cent on the same period, according to this latest survey from PricewaterhouseCoopers MoneyTree Survey in partnership with VentureOne.
An overview of US venture capital funds
20/11/2001. What are the characteristics of US funds? How are they structured? What should investors expect in terms of liquidity and capital calls? What are 'US funds' limitations? Jennifer Post from US law firm Edwards & Angells offers investors an introduction to general legal, business and tax issues in relation to US formed venture funds.
Venture-backed M&A remains steady in Q3
20/11/2001. US venture-backed buy-out activity held steady in the third quarter despite the deteriorating conditions in financial markets and mounting macroeconomic uncertainty, according to the latest research from Venture Economics and the US National Venture Capital Association. The dramatic fall in average deal size reflects the steep drop in valuations since public markets collapsed and the IPO exit route was slammed shut.
Private equity firms compensation survey
20/11/2001. Huge pay gains seen in the private equity industry in 2000 are unlikely to be seen again this year or next, according to William M Mercer's 2001 Private Equity Firms Compensation Survey. Big gains in base pay and carried interest boosted pay in the private equity industry last year but the outlook for the future is not as rosy.
VC creates eight million jobs in the US
31/10/2001. VC has created eight million jobs and $1.300bn in revenue, says this study from DRI-WEFA and NVCA. The report highlights the impact of venture capital investment on US economic performance as a whole.
Building the paper trail
31/10/2001. Tom Edens of Marion Financial Corp and John M McDonald of Shaw Pittman outline the most important considerations in each phase of an acquisition transaction. A good insight for investors of the legal issues faced by fund managers in US M&A deals.
ECN seeks to take private equity public
26/10/2001. Laurence Allen, CEO of the New York Private Placement Exchange (NYPEE) is seeking to bring liquidity to venture capital through his new Electronic Communication Network (ECN). Red Herring reports.
US venture capital returns remain negative but outperform public markets
23/10/2001. Annual venture capital returns in the US have dropped for the second straight quarter, according to this report released by the NVCA and Venture Economics. The report attributes these returns to the shutdown of the mergers and acquisitions and the initial public offering markets, limited liquidity options and the collapse of many internet companies. Venture capital returns did not, however, fall as in the public markets.
Institutional investors seek alternatives to plain-vanilla bonds and equities
23/10/2001. Alternative investments are becoming more common in Canada and thw outlook is promising, according to Scot Blythe of advisor.ca. However, much needs to be done for the sector to develop to its full potential.
Canadian private equity market growing, but unlikely to reach U.S. levels
17/10/2001. The Canadian private equity market is growing with investment now emerging from pension funds and insurance companies. Scot Blythe from advisor.ca considers the opportunities available in Canada and the extent to which the market will need to develop if it is to catch up with the US.
Despite tough market, five venture-backed companies squeak out successful IPOs in Q3
10/10/2001. Venture-backed offerings were few and far between in the US domestic IPO market, according to these latest figures from NVCA and Venture Economics. Just five venture-backed US based companies managed to execute public offerings over the past three months, raising a total of $279.9m.
Silicon Valley venture capital confidence survey, Q3 2001
26/09/2001. The news for investors is relatively positive – only 40 per cent of venture capitalists questioned for this Deloitte & Touche survey expected exit valuations to decline further in the coming six months. That's down from 79 per cent in quarter two.
East Coast venture capital confidence survey Q3 2001
25/09/2001. Venture capitalists' confidence has been temporarily shaken, according to this Deloitte & Touche survey. Most respondents said they expected between 10 and 33 per cent of venture-backed companies to fold by the end of 2001.
The PricewaterhouseCoopers Money Tree Q2 Survey
07/09/2001. Equity investment in US venture-backed companies has fallen for the fifth consecutive quarter according to PricewaterhouseCoopers and VentureOne. In Q2 of this year, equity investments fell to $8.2bn compared to $10.4bn in Q1. This represents a 21 per cent decrease.
Private equity statistics Q2 2001
16/08/2001. US fund raising activity dropped sharply in Q2 2001, according to the latest statistics released by the NVCA and Venture Economics. $9.7bn was raised in Q2, down from $16.7bn in Q1. The latest figure represents a 68 per cent decrease compared to Q2 last year when a record $30.3bn was raised.
Venture Capital Investing Survey 2000
28/06/2001. The US investment market is expected to grow steadily during 2001, despite some hiccups in recent months. This report by Pricewaterhouse Coopers suggests that venture investing is heading towards a new plateau.
Private equity overview 1999
29/05/2001. The Canadian venture capital industry grew healthily in 1999, according to figures released by the Canadian Venture Capital Association. After a remarkable year, the signs are that Canada is becoming an increasingly sophisticated VC market.
Venture capital - quarterly updates 2000
29/05/2001. Canadian venture capital set new records in 2000. The total amount of capital invested neared the $5bn mark by the end of the third quarter. Despite strong growth, statistics show that Canada continues to lag behind its southern rival – the US.
Tax in Canada
29/05/2001. Capital gains tax can have a serious impact on investment returns and subsequently affects where institutions invest their capital. The Canadian Venture Capital Association believes that budget proposals concerning capital gains, outlined in February 2000, do not go far enough to foster a competitive business environment.
Tax and legal changes affecting private equity
29/05/2001. The year 2000 was another record year for Canadian private equity says Smith Lyons LLP. And, with tax and legal changes on the horizon, 2001 looks set to be even better.
Private equity overview 2000
29/05/2001. Canada's venture capital industry shattered all records in 2000. Over $6bn was invested, reflecting a 132 per cent increase on 1999. This report is a summary of the key trends for the year, by Macdonald & Associates for the Canadian Venture Capital Association
Private equity statistical review 2000
29/05/2001. Canada's venture capital industry had a milestone year in 2000 with $6.3bn invested, according to figures released in March 2001 by the CVCA.
Private equity statistical review 1999
29/05/2001. Private equity in Canada continued to flourish in 1999, with early-stage activity showing strong growth. Capital invested reached a record high, particularly in follow-on investments according to this review by Macdonald & Associates and the CVCA.
Economics of the private equity market
29/05/2001. The private equity market in the US has seen dramatic growth over the last 20 years. This study from Ice Miller Donadio & Ryan, published in 1996, explores the economic foundations of this development, drawing attention to the factors that prompted this expansion.
Private equity statistics Q1 2001
29/05/2001. Private equity investments in the US slowed in the first quarter of 2001, according to NVCA figures. But despite the dot.com fall-out, internet companies were still top of the VC list.
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