{"id":648756,"date":"2013-03-25T19:17:48","date_gmt":"2013-03-25T23:17:48","guid":{"rendered":"http:\/\/www.pehub.com\/?p=193036"},"modified":"2013-03-25T19:17:48","modified_gmt":"2013-03-25T23:17:48","slug":"series-a-crunch-worsens","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/648756","title":{"rendered":"Series A Crunch Worsens"},"content":{"rendered":"

Fenwick & West’s<\/strong> annual seed financing study found that the Series A crunch has worsened. The survey found that 45% of companies receiving seed funding in 2010 raised a Series A funding by the end of 2011. But only 27% of companies receiving seed funding in 2011 had raised a Series A funding by the end of 2012. What’s more, nearly a quarter of companies funded in 2011 raised follow-on seed financing compared with just 12% the year before.<\/p>\n

PRESS RELEASE<\/strong><\/p>\n

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Fenwick & West Releases 2012 Internet\/Digital Media and Software Industries Seed Financing Survey Showing Strong Valuations, but Decline in Percentage Obtaining Series A Financing<\/strong><\/p>\n<\/div>\n

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MOUNTAIN VIEW, Calif., March 25, 2013 \/PRNewswire\/ — Fenwick & West LLP, one of the nation’s preeminent law firms providing comprehensive legal services to high technology and life science clients, today released its 2012 Seed Financing Survey.<\/p>\n

The survey covers 61 internet\/digital media and software companies that raised seed financing in the Silicon Valley or Seattle markets in 2012.\u00a0 For purposes of the survey, a “seed financing” is the first round of financing of a company in which it raised between $250,000 and $2.5 million and is led by a professional investor.<\/p>\n

“This is our third annual Seed Financing Survey.\u00a0 We began publishing the survey in 2011 in response to the increased amount and importance of seed investment in the entrepreneurial community.\u00a0 This third survey finds that valuations of seed equity financings in the internet\/digital media and software industries have continued to increase, from an average of $3.2 million in 2010 to $3.8 million in 2011 to $4.6 million in 2012, and discusses the continued growth and institutionalization of seed financing,” said Barry Kramer, co-author of the survey and a partner in the Fenwick & West Start-ups & Venture Capital Group.<\/p>\n

Some of the results of the survey are as follows:<\/p>\n