David Goldenberg speaks about Trends in VC Financing
According to a report released this week by investment research and consulting firm Prequin Ltd, Venture capital fund managers invested 58 percent more in young companies in 2014 than in 2013. Alison Frost, a reporter with The Daily Journal, further highlights information contained in the report in her January 6th, 2015 article, ”Venture Capital Investments Grow in Size, Shrink in Numbers.” She points out that although the number of venture capital financings globally declined by 11 percent, the aggregate value of those financings rose $86.6 billion.
“That makes sense to me given the number of extremely large financing deals that happened last year…Airbnb and those kind of companies that are private that raised a ton of money,” said VLP Law Group Founding Partner David Goldenberg, who has helped his clients complete more than 80 financings in his career.
He further comments in the article, “You never used to see $100 million financings, let alone multi-hundred-million-dollar financings,” Goldenberg said. “If a company was going to raise more than $100MM a number of years ago they would have gone public.”
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