From the VCExperts non-Silicon Valley report, which is provided as a contrast to the the Fenwick & West Silicon Valley report. The deal characteristic with the highest occurrence:
- 53% were participating preferred (as opposed to convertible preferred)
- 53% were pari-passu with earlier preferred investors (as opposed to senior)
- 96% were a 1x liquidation preference (as opposed to greater than 1x)
- 71% were non-cumulative dividends (as opposed to cumulative)
- 92% had weighted average anti-dilution protection (as opposed to full ratchet)
These terms are a little more company friendly than I would expect, but maybe that is the product of a more optimistic investor for Q2 2011. I am interested to see how the downturn of the past few weeks and the potential struggles with the IPO market will influence the investor for Q3.
Also, any reader should take into consideration that the footprint “non-Silicon Valley” is a very large geography. Inside that geography are micro-markets that have their own personality for terming deals.
The F&W report represents Silicon Valley only deals…The tile of this post is “Non-Silicon Valley”???
Thanks for the catch. My data was from VC Experts in response to Fenwick’s Silicon Valley report. Again, thanks for letting me know about this. I’ll revise the post.